2023 (6) TMI 141

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.... furnaces. They also manufactures pre-fired shapes and sizes that can be fitted at specified places inside the furnaces. 2.2 Revenue was of the view that appellant has taken Cenvat credit of Rs. 75,908/- on steel items such as Plate, Angles, Beam, Channels & Rounds during the period 2008-09 to 2010-11. Revenue was of the view that these items do not fall within the category of inputs or capital goods nor are they used for the manufacture of the final product. Hence Cenvat credit is not available on such materials. The show cause notice dated 05.04.2013 was issued to recover the inadmissible Cenvat Credit. Notice also proposed to impose penalty under Section 11AC. 2.3 Notice was confirmed by the Order-in-Original no. 18/NGPI/ 2014/Dem dated 30.06.2014 and by Commissioner (Appeal) vide Orderin- Appeal no. NGP/EXCUS/000/APPL/261/14-15 dated 20.01.2015. 2.4 This order was challenged by the appellant before CESTAT vide their order no. A/92352/2017 dated 04.08.2017 set aside the order and remanded the matter back to original authority for settling as follows: 'i) The use of steel items for fabrication of structures and structures for bearing: machinery would appear to b....

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..... On going through the factual verification report submitted by the concerned judicial officer is reproduced below: '2. On request being made by this office, M/s. Castwel Industries, C-18/6, MIDC Industrial Area, Nagpur vide its letter ref.no. CE/CI/2022-23/0234 dated 23 12.2022 submitted the photocopy of purchase order, specification & drawings, internal job receipt, sales invoices and photograph on sample basis, which are relevant to issue in dispute. One set of these documents so submitted by M/s Castwel Industries are also submitted herewith for kind perusal of the Hon'ble CESTAT. 3. On perusal of Purchase/Brief Order No. NBC/MMXP2/SMLT/8920/118 dated 21.05.2017 (Page no.1 to 14) of M/s. National Aluminium Company Limited (NALCO), it is observed that as per 'Scope of Order', it cover procurement of materials, manufacture, testing, packing & forwarding, loading onto the carriers, transportation up to site and supply of "ABF Castables & Precast Shapes" for Smelter Phase-II Expansion Project at Angul, Orissa. The Castables are in powder form used for casting moulds and Precast Shapes are casted moulds of various shapes and sizes as per the specificati....

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.... 9. The perusal of Job Receipt dated 18.05.2009 (Page No. 33) and 15.05.2009 (Page No. 34) indicates that under the cover of these documents, the items such as M.S.Angle, M.S.Plate and M.S.Rod were issued for manufacture of Precast Shapes with metal frame, for NALCO according to Drawing No. D-3713413042. 10. Further, the perusal of sample invoices of M/s Castwel Industries (Page No.35 to 39) indicates that the manufactured Precast Shapes, Central Blocks and End Blocks, all with metal frame, were dispatched to NALCO, as ordered by them. 11. The sample photograph (Page No. 40) is of a Central Block with metal frame. 12. Though the complete sets of documents have not been provided by M/s. Castwel Industries and the documents have been provided only on sample basis, but in view of the above stated facts, it is apparent that M.S. Round, M.S. Angle and M.S. Plate were used for framing manufactured Precast Shapes, Central Blocks and End Blocks, as per drawings. It also indicates that these steel items, on use, gets consumed into the Precast Shapes, Central Blocks and End Blocks (cannot be separated) and therefore, these Precast Shapes, Central Blocks and End ....

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....ioner of Central Excise, Lucknow Vs. RamgarhChini Mills [2018 (14) G.S.T.L. 340 (All.)] in the High Court of judicature at Allahabad, it was held that "Cenvat credit- Inputs/Capital goods- M.S. items - Fabrication of structural support for capital goods Issue no longer res integra in view of judgment dated 10-1-2017 passed in Central Excise Appeal No. 21 of 2012 (Commissioner v. Bajaj Hindustan Limited)- Cenvat credit on M.S. Plates, M.S. Angles, M.S. Channels, Steel Sheets, Aluminium Sheets, Bars and Rods used as structural support in fabrication of tanks, pipeline for boilers, modification of plant, etc., not admissible-Rules 2(a) and 2(k) of Cenuat Credit Rules, 2004. Appeal was admitted on following substantial question of law: "(i) Whether on the facts and circumstances of the case, the Tribunal has committed substantial illegality by allowing the Cenvat credit on M.S. Plates, M.S. Angles, M.S. Channels, Steel Sheets, Aluminium Sheets, Bars and Rods used in fabrication of tanks, fabrication of pipeline for boilers house. modification in the assessee's mills, cane carrier side plates, etc., though the respondent-assessee, prima facie, is not entitled for C....