2017 (8) TMI 159

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t of Rs. 1,16,783/- on inputs viz. TMT Bars and Cements during the period from December 2006 to March 2011 claiming that the same are used for construction of storage tanks for storage raw-materials, accordingly, eligible to credit under Rule 2(k) of Cenvat Credit Rules, 2002. Demand notice was issued to them for recovery of the said credit alleging that the definition of Input is not applicable to the said items. On adjudication, the demand was confirmed with equal amount of penalty. Aggrieved by the said order, they filed an appeal before the Ld. Commissioner (Appeals), who inturn, rejected their appeal. Hence, the present appeal. 4. Ld. Advocate Shri Willingdon Christian for the appellant submits that these items, namely, TMT Bars and C....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....cise, Chandigarh-I. 5. Ld. AR for the Revenue reiterated the findings of the Ld. Commissioner (Appeals). 6. I find that the dispute centres around the eligibility of CENVAT credit on Ms. Angles, Channels, and Beams, TMT Bars, Cements etc., which were used in the fabrication of storage tanks as well as structures which support capital goods. I find that the issue has been recently considered by the Principal Bench at Delhi in Singhal Enterprises Pvt. Ltd's (supra). After analysing the principle of law settled on the issue by various High Courts and Supreme Court observed as follows :- "13. Now we turn to the question, whether credit is admissible on various structural steel items, such as, MS Angles, Sections, Channels, TMT Bar, etc.,....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....jasthan Spinning & Weaving Mills Ltd., 2010 (255) E.L.T. 481 (S.C.), wherein the Hon'ble Supreme Court has considered an identical issue of steel plates and MS channels used in the fabrication of chimney for diesel generating set. The credit stands allowed in the light of Rule 57Q of the erstwhile Central Excise Rules, 1944. In the said judgment, the Apex Court has referred to the user test evolved by the Apex Court in the case of CCE, Coimbatore v. Jawahar Mills Ltd., 2001 (132) E.L.T. 3 (S.C.), which is required to be satisfied to find out whether or not particular goods could be said to be capital goods. When we apply the user test to the case in hand, we find that the structural steel items have been used for the fabrication of support ....