2018 (4) TMI 819

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....elates to period from June 2009. The credit of duty availed on various steel items like mill plates, channels, joists etc. were sought to be disallowed on the ground that these are structural items excluded from eligibility for credit. The lower authority relying on the decision of the Tribunal in Vandana Global Ltd. - 2010 (253) E.L.T. 440 (Tri. - LB), disallowed the credit. 2. After hearing both the sides and upon perusal of the appeal records it is noticed that the usage of the duty paid MS it ems has been clearly recorded after a spot verification by the Jurisdictional officer. It is mentioned that these input items were actually used for structure of blower at fly ash storage silo, upgradation of wagon loading system/machine at pack....

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....: - "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., which have been used by the appellants in the fabrication of support structures on which various capital goods are placed? The same stands denied by the lower authority. The learned DR has sought dis allowance of the same by citing the decision of the Larger Bench in the case of Vandana Global Ltd. (supra) and other judgments. Further, he has brought to our notice and emphasized the amendment carried out in Explanation-II to Rule 2(a) which defines the term "Input" W.E.F. 7-7-2009. It has further been pleaded that the Cenvat credit claimed for the period prior to this will be c....

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....ar 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 structures for capital goods. The appellants have argued that the various capital goods, such as, kiln, material handling conveyor system, furnace, etc. cannot be suspended in mid-air. They will need to be suitably supported to facilitate smooth functioning of such machines. It is obvious that the structural items have been suitably worked upon for this purpose. Accordingly, the goods fabricated, using such structurals, will have to be considered as parts of the relevant machines. The definition of 'Capital Goods' includes, components, spares and accessories of s....