2019 (1) TMI 1300

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....le Fibre falling under Chapters 54 and 55 of the First Schedule to the Central Excise Tariff Act, 1985. They have been availing CENVAT Credit on inputs/capital goods and input services under CENVAT Credit Rules, 2004. Alleging that the appellant had wrongly availed CENVAT Credit on items namely, M.S. Steel Sections such as Beam, Plates, Joists, Angles, Channels and GP sheets etc. falling under Chapter 72 of Central Excise Tariff Act, 1985, which claimed to have been used in the fabrication of structural ducts etc., show-cause notice was issued for recovery of the said credit amounting to Rs. 98,89,385/- along with interest and penalty. On adjudication, the demand was confirmed with interest and penalty. Hence, the present appeal. 3. Lear....

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...., 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 disallowance 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 covered within the decision of the Larger Bench in the case of Vandana Global Ltd. (supra). 14. The Larger ....

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....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 such capital goods. Accordingly, applying the "User Test" to the facts in hand, we have no hesitation in holding that the st....