2018 (12) TMI 239

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....ist, sections, wire rope, wire mesh, etc., trading them as input/capital goods. Show Cause Notice No. 8344 dated 04.10.2011 was served upon the appellant proposing the recovery of the aforesaid amount alleging that the aforesaid articles are neither the inputs nor the capital goods. The interest at the appropriate rate and the proportionate penalty was also proposed. The said proposal of demand was initially confirmed vide Order No. 40 dated 25.10.2012 as was passed by Assistant Commissioner to the extent of disallowing the cenvat credit amounting to Rs. 1,77,272/- on capital goods and cenvat credit amounting to Rs. 80,600/- on the inputs for the period in dispute alongwith the interest and penalty as proposed. Being aggrieved, Appeal was f....

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....present Appeal is as to whether the articles as that of angles, channels, HR plates, MS rounds, joist, sections, wire rope, wire mesh, etc. are the inputs/capital goods enabling the assesse/ appellant to avail the cenvat credit. The Adjudicating Authority below has rejected the claim relying upon the decision of Larger Bench but the said decisions stands over ruled by the decision of High Court of Chhattisgarh as is impressed upon on behalf of the appellant. Perusal of the decision reflects that the structures as mentioned above viz. angles, joist, beams, bars, plates as were denied to be the capital goods in the decision of Vandana Global(supra) are held to be the capital goods. The Hon'ble Supreme Court has earlier dealt with the issue in....

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....at the structural items used in the fabrication of support structures would fall within the ambit of 'Capital Goods' as contemplated under Rule 2(a) of the Cenvat Credit Rules, hence will be entitled to the Cenvat credit. 6. This principle of "User Test Principle" as classified by the Hon'ble Apex Court has subsequently been used in several decisions, i.e. C.C.E. Vs. India Cements Ltd. 2014 (310) E.L.T. 636. Even in the case of Vandana Global's own case as the Commissioner (Appeals) has relied upon the above said decision while rejecting the appellant's case. High Court of Madras in the case C.C.E. Vs. India Cements 2012 (285) E.L.T. 341 has also reiterated the principle of "User Test Principle" as detailed by Hon'ble Apex Court. Seeing fr....