TaxTMI 
TaxTMI 
2017 (10) TMI 608
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....ondent assessee is engaged in the manufacture of Sponge Iron classifiable under Chapter 72 of First Schedule of the Central Excise Tariff Act, 1985. The Adjudicating Authority disallowed the CENVAT Credit on various Iron & Steel items. By the impugned order, Commissioner (Appeals) set aside the adjudication order. Revenue in their grounds of appeal stated that the items in question were used in supporting structures of capital goods which are permanently attached to the earth. The Revenue strongly relied upon the decision of the Larger Bench of the Tribunal in Vandana Global Ltd. 2010 (253) E.L.T. 440 (Tri.-LB). The assessee stated before the Adjudicating Authority that the items were used for fabricating / manufacturing the steel structure....
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.... capital fabrications and will not satisfy the criteria of parts and components or accessories of such machinery. We find that such observation has to be supported by material facts. The same is not available in the present appeal. Further, it is to be noted that whether iron and steel item is to be considered as part or component or accessory of capital goods can be decided by applying user test as decided in Jawahar Mills Ltd. (supra) and elaborated in CCE Vs.Rajasthan Spinning & Weaving Mills Ltd. reported in 2010 (255) ELT 481 (S.C.). In fact, the ratio evolved by the Hon'ble Supreme Court has been consistently followed by various High Courts as well as this Tribunal while deciding the disputes of similar nature. Admittedly, in large nu....
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....597 (P&H) held that channels and angles, joint of iron steel used for installation of batch vessel or essential plant and machinery and are eligible for credit as capital goods. The Hon'ble Madras High Court in Thuru Arroran Sugar- 2015- TIOL-1734-HC-Mad.CX held that credit on M.S. Plates, angles, channels utilized in construction/erection of plant were eligible for credit. The High Court observed that the principle laid-down by the Hon'ble Supreme Court in Rajasthan Spinning and Weaving Mills Ltd. (Supra) is applicable to such situation. 7. We note that the Tribunal has been consistently following the ratio that the steel items when they are used in fabrication of capital goods and their accessories inside the manufacturer premise....
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....nce to be considered retrospectively. However, we find that the said decision of the Larger Bench was considered by the Hon'ble Gujarat High Court in the case of Mundra Ports & Special Economic Zone Ltd. 2015 (04) LCXO 197, wherein it was observed that the amendment made on 07.07.2009 cannot be held to be clarificatory and as such would be applicable only prospectively. 15. We find that the controversy can be laid to rest by making a reference to the decision of the Apex Court in the case of CCE, Jaipur Vs. Rajasthan Spinning & Weaving Mills Ltd.- 2010 (255) ELT 481 (SC)= 2010-TIOL-51-SC-CX, wherein the Hon'ble Supreme Court has considered an identical issue of steel plates and MS channels used in the fabrication of chimney for die....
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....ly on decision of Hon'ble Madras High Court in CCE, Salem Vs. Madras Aluminium Co. Ltd. 2017 (349) ELT 133 (Mad.) which also deals with the scope of credit on similar items and also application of the concept of support structure while deciding the dispute. 7. Ld. A.R. also relied on the decision of Hon'ble Supreme Court in the case of Saraswati Sugar Mills Vs. Commr. of C. Ex., Delhi-III [2011 (270) E.L.T. 465 (S.C.) and also the decision of Hon'ble Allahabad High Court in the case of Daya Sugar Vs. Commr. of Central Excise, Meerut-I [2015 (316) E.L.T. 394 (All.). We note that the decision of the Hon'ble Supreme Court in Saraswati Sugar Mills dealing with provisions of erstwhile Rule 57Q and Notification of 65/95-CE were also exam....