TaxTMI 
TaxTMI 
2019 (5) TMI 654
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....case are that the appellants are engaged in the manufacture of sugar and molasses and is availing the credit of duty paid on inputs, capital goods and input services under the provisions of CCR, 2004. During the verification / scrutiny of monthly ER-1 returns for the period from September 2015 to March 2016, it was noticed that the assessee has wrongly availed and utilized CENVAT credit to the tune of Rs. 39,25,612/- on goods viz. HR coils, MS angles, MS channels, MS plates, MS flats etc. falling under Chapter 72 of CETA, 1985 treating them as capital goods. It is noticed that the above mentioned items were used by them for construction of civil structures, expansion & modernization, fabrication of supporting structures for plant / machiner....
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....tructures of machinery is totally unjust and arbitrary. He further submitted that the credit of Rs. 4,36,511/- availed on the steel material falling under Chapter 72 cannot be denied being used for repair / maintenance / fabrication of eligible capital goods. In support of this submission, he relied upon the following decisions:- i. Singhal Enterprises Pvt. Ltd. Vs. CCE [2016(341) ELT 372 (affirmed by High Court as reported in 2018(359) ELT 313] ii. CCE Vs. Millenium Starch India Pvt. Ltd. 2018(3) TMI 914] iii. Gemini Graphics Pvt. Ltd. Vs. CCE [2018(10) TMI 1468] iv. CCE Vs. Sanghi Industries Ltd. [2018(5) TMI 1507] v. CCE Vs. Almac Enterprises [2018(5) TMI 1523] vi. Hindustant Copper L....
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....f the appellant and has accepted the admissibility of credit, then he should not have remanded the matter back to the original authority and should have allowed the appeal of the appellant. He further submitted that the CENVAT credit of Rs. 26,27,670/- availed on the goods falling under Chapters 84, 85, 90 and the credit of Rs. 2,33,571/- availed on the pipes / tubes and fittings thereof are not deniable being specifically covered under the definition of capital goods. He further submitted that the credit of Rs. 73,506/- availed on Nickel screen falling under Chapter 75 is not deniable being used as component in centrifugal machine and for this submission, he relied upon the decision in the case of Simbholi Sugar Mills Ltd. Vs. CCE [2004(17....
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.... 32, 39, 40, 56, 68, 84, 85, 90. Further I find that the Commissioner(Appeals) has in fact accepted the admissibility of credit on various items but remanded the case back to the original authority for verification of the usage even after certificate from Chartered Engineer was submitted by the appellant. Further I find that most of the impugned goods have been covered in the definition of inputs and have been used for repair and maintenance / fabrication of capital goods. The various decisions relied upon by the appellant cited supra have held the eligibility of the assessee for CENVAT credit for various goods which have been used for manufacturing of final product. Further I find that the credit of Rs. 26,27,670/- have been availed on the....
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....s 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 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. 7. Besides this, the Chartered Engineer has certified the usage of all the impugned goods which are in dispute in the present case and he has certified that....