2018 (1) TMI 253

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.... This appeal has been filed by Asian Colour Coated Ispat Ltd. against denial of cenvat credit on certain capital goods. 2. Ld. Company representative appeared for the appellants. He argued that the said goods have been used for construction of capital goods and therefore credit of the same should be allowed. It is noted that in the grounds of appeal the appellants have relied on various decisi....

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....ds. On this very issue, the Hon'ble Apex Court in the case of Saraswati Sugar Mills (supra) has given its finding as under:- "19. It appears to us, in the light of the meaning of the expression 'component parts' that the iron and steel structures are not essential requirements in the sugar manufacturing unit. Anything required to make the goods a finished item can be described as component ....

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....rcular No.276/110/96-TRU, dated 2-12-1996 issued by the C.B.E.C. The relevant portion of the Circular is as under :- "3. The matter has been examined. With effect from 23-7-1996, capital goods eligible for credit under Rule 57Q have been specified either by their classification or by their description. Clauses (a) to (c) of Explanation (1) of the said rule cover capital goods by their cla....

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....nents, accessories, which are to be used with capital goods of clauses (a) to (c) of Explanation (1) of Rule 57Q and classifiable under any chapter heading are eligible for availment of Mod vat credit." 6. In view of the clear finding of the Hon'ble Apex Court, items used for fabrication of supporting structure cannot be allowed. Moreover with effect from 07.07.2009 the definition of "input....