TaxTMI 
TaxTMI 
2023 (11) TMI 674
X X X X Extracts X X X X
X X X X Extracts X X X X
....t of duty as penalty. Aggrieved against the impugned order, the Appellant has filed this appeal. 2. In the present case, the Appellant claimed that they have availed Cenvat credit on iron and steel products which were used in the manufacture of capital goods in their factory for manufacture of final products, on which they paid Central Excise duty. The appellant produced Chartered Engineer's Certificate dated 30.11.2011, to the effect that the iron and steel products were used for furnace equipment and furnace structure, raw material handling system and pollution control equipment. The department alleged that the Appellant was not entitled to avail credit on the Angles, Channels, Beams, Joists, Sheets, Plate, Coils etc, as these good....
X X X X Extracts X X X X
X X X X Extracts X X X X
....se of Vandana Global Ltd. Vs.CCEx., Raipur reported in 2018 (16) GSTL 462 (Chhattisgarh), wherein it has been held that any steel item which has been used for fabrication of capital goods or inputs is entitled for cenvat credit in terms of Rule 2(l)/2(k) of the Cenvat Credit Rules, 2004. 6. This Tribunal has also decided the issue in the case of M/s Uniglobal Papers Pvt. Ltd vide Final Order No.75090/2023 dated 14.03.2023, wherein this tribunal has observed as under: 13. Now we turn to the question, whether credit is admissible on various structural steel items, 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....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... considered an identical issue of steel plates and MS channels used in the fabrication of chimney for diesel generating set. The credit stands allowed in the light of Rule 57Q of the erstwhile Central Excise Rules, 1944. In the said judgment, the Apex Court has referred to the "user test" evolved by the Apex Court in the case of CCE, Coimbatore v. Jawahar Mills Ltd., 2001 (132) E.L.T. 3 (S.C.), which is required to be satisfied to find out whether or not particular goods could be said to be capital goods. When we apply the "user test" 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....
X X X X Extracts X X X X
X X X X Extracts X X X X
....acture of final product. By virtue of explanation 2 - goods used in the manufacturer of capital goods which are further used in the factory of the manufacture also falls within the definition of input. In 2009, this explanation has been amended to the following effect : "but shall not include cement, angles, channels Centrally Twister Deform bar (C.T.D.) or Thermo Mechanically Treated bar (TMT) and other items used for construction of factory shed, building or laying of foundation or making of structures for support of capital goods." 8. Therefore, the notification of the Legislature is very clear that it is only the ''inputs'' used in the manufacture or construction of capital goods which is construed as input and cenvat ....