2019 (2) TMI 470

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....ts treating the same as inputs and as capital goods which were used to make structures to give support to the various machines and laying foundation for capital goods. The Department alleged that the credit has wrongly been availed as angles, channels, etc have not been used for the manufacture of components spares and accessories for the machines but to make the structures to give support to various machines and the structures fitted to the machines which are not eligible to be called as input. Resultantly, SCN No. 1941 dated 27.03.2015 was served proposing a demand of Rs. 4,33,876/- i.e. the amount of credit availing for the period w.e.f. April 2014 to January may not be disallowed and may not be recovered alongwith the interest and the a....

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.... availed to apply the use its principle. Finally, relying upon the following case laws the order under challenge is prayed to be set aside: Honda Motorcycle & Scooters India Pvt. Ltd. Vs. C.C.E., Alwar Final Order No. 57163/2017 DCM Shriram Ltd Vs. C.C.E., Udaipur Final Order No. 53348/2018 dated 27.11.2018 C.C.E., Jaipur Vs. Rajasthan Spinning & Weaving Mills Ltd. 2010 (255) E.L.T. 481 (S.C.) Jayaswal Neco Ltd. Vs. C.C.E., Raipur 2015 (319) E.L.T. 247 (S.C.) Singhal Enterprises Pvt. Ltd. Vs. C.C. & C.E., Raipur 2016 (341) E.L.T. 372 (Tri. - Delhi) 3. Ms. Tamana Alam, Ld. DR has justified the order however simultaneously has conceded for findings of Hon'ble High Court Chhattisgarh reversing the decision of Vandana Global (supra) ....

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....oods. It was held: When we apply the "User Test Principle" 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 structural, will have to be considered as parts of the relevant machines. The definition of 'Capital Goods' includes, components, spares and accessories of such capital good....