TaxTMI 
TaxTMI 
2025 (7) TMI 210
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....f steel, such as C.R. coils, plates, H.R. sheets, angles, channels, steel squares, H.R. coils, stainless steel sheets etc., on which credit has been taken, were not utilized in the process of manufacture and credit thereon was wrongly availed and utilized with intent to evade payment of duty. The basic question therefore that arises for consideration, concerns the inadmissibility of the credit availed on the said goods allegedly used to make support structures for machines, as not covered within the meaning of Rule 2(k) of CENVAT Credit Rules, 2004. Before the lower authority the appellant refuted the charge pertaining to inadmissibility of said items as inputs and such goods being ineligible for credit under Rule 3(1) of CENVAT Credit Rules, 2004. 3. It is placed on record that the manufacturing plant of the appellant is an Integrated Steel Plant, wherein they manufactured both primary as well as rolled products of iron & steel. It is the appellant's case that in the course of manufacture of final products, parts and components of machinery as well as the machinery in itself gets worn out, requiring replacement or repair. After a fixed number of heats the inner lining of the fu....
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.... Therefore, such submissions have hardly any evidentiary value in support of consumption of those Cenvatable items in the factory. In view of the foregoing discussions, I find that. Cenvat Credit availed on such items is not admissible 6.13 As discussed in foregoing paras at length it is evident that the noticee is trying to camouflage the actual purpose of use of the item in dispute. The noticee has accepted to have used the said items for the manufacture of Capital Goods. They have further contended that the steel items were used for fabrication of various parts of capital goods. Moreover, a machine/machineries is assembled and a structure is fabricated, Cenvat credit on the inputs used for such fabrication work and repair & maintenance work does not also qualify as inputs. Thus, the noticee has tried to mask their illegitimate act of taking wrong Cenvat credit on items not specified as inputs under Cenvat credit Rules 6.14 1 find that the Board in the circular No. 966/09/2012 CX dated 18.05.2012 regarding "clarification regarding classification of Structural components of Boiler and Admissibility of Cenvat credit on these Structural components clearly stated th....
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....pute that the items were not used for fabrication/manufacture of new fresh capital goods. Therefore, scuch Items are not covered by the explanation gives above in view thereof. I find that credit on this count is not admissible to the noticee 6.16 Further, the decision in the case of Saraswati Sugar Mills v CCE 2011(270) ELT 465 (SC) Hon'ble Supreme Court has distinguished the earlier decision of Hon'ble Supreme Court in the case of CCE Rajasthan Spinning and Weaving Mills Ltd. (2010) 255 ELT 481 (SC). The decision ibid is squarely applicable in the present case where Supreme Court denied credit on iron and steel sheets and angles uned for the fabrication of a paint as steel structures and Larger Bench decision of the Tribunal in the case of Vandana Global Ltt vs. CCE (2010)253 ELT 440 (Tri-LB), also held that the goods used for making structural support for plant and machinery cannot qualify either as capital goods or as inputs. In view of above case livs I am constrained to hold that the noticee is not entitled to Cenvat credit on the said items in question. 6.17 In view of above statues and judiciary pronouncements, it may be conclusively held that cons....
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....ecord that the appellant vide their letter dated 28.07.2014 and Certificate of the Chartered Engineer dated 21.07.2014 had indicated to the Range Officer, item-wise & quantity-wise material used for production of support structures and such materials used for manufacture of different components and accessories of plant & machinery on which CENVAT Credit was not taken. The said letter is retraced hereunder : 7. A detailed statement was further submitted in Form on 11.09.2014, indicating month-wise position in terms of Rule 9(5) of the Cenvat Credit Rules, 2004. Further, vide their letter dated 11.09.2014, it was clearly indicated by the appellant that no credit had been availed on steel items used for setting up of the factory shed and building and support structures and that credit had only been taken on such steel material used for manufacture of capital goods, as indicated in the Annexure to the said letter. Further vide their letter dated 21.07.2017 enclosing therewith the Chartered Engineer's Certificate of the particulars of the components and accessories alongwith the sub-headings thereof, the appellant indicated item-wise consumption of the impugned material in the manufa....
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....ne the Commissioner was squarely unjustified in disallowing the credit and confirming the demand. 12. We also note that out of the total credit of Rs.1,91,37,547/-, third party credit on H.R. Coils amounts to 12,91,671/- credit which has also been disallowed rendering a findings that such coils have been used for, structural components and support structures. On the contrary it has been the appellant consistent case that such H.R. Coils were actually used to make „FORMER' an essential part of the furnace and this "Former" is placed in the furnace for manufacture of finished goods. The said Former is capable of withstanding 728 heats and in the process does actually gets mixed up with the final products as they melt inside the furnace itself. We note that in accordance with Board's Circular No. 690/06/2003-CX dated 20.01.2003, credit on such Former is eligible to the assessee, as an input. We find no reason to disallow credit on such H.R. Coils gone into the manufacture of the said products. In view of discussions aforesaid, we find no substance in the Department's allegation of contravention of Rules Z(k)3 and / or 9(5) of the Cenvat Credit Rules, 2004. We are of the vi....
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....DUSTRIES LTD. M AADCS5890EXM005 22.05.13 'JOIST 72 6 Inv 01668 28.05.13 SHREE PARASHNATH RE-ROLLING MILLS LTD. M AAGCS2108EXM001 29.05.13 990719 118886 2377 1189 CHANNEL 72: 7 Inv 04145 25.05.13 BHUSHAN POWER & STEEL LTD. M AAACB9760DXM008 29.05.13 448942 53873 1077 539 G.C.SHEET 72: 8 Inv 00059 06.06.13 AMARDEEP ISPAT PVT. LTD. D AAFCA8442EXD001 08.06.13 919449 93476 1870 935 G.C.SHEET 72: 9 Inv 10012 07.06.13 BHUSHAN POWER & STEEL LTD. M AAACB9760DXM008 . 10.06.13 721872 86625 1733 866 G.C.SHEET 721 10 Inv 00070 17.06.13 AMARDEEP ISPAT PVT. LTD. D AAFCA8442EXD001 18.06.13 491538 49973 999 500 G.C.SHEET 72. 11. Inv 0470 22.06.13 SURYA ALLOY INDUSTRIES LTD. M AADCS5890EXM005 23.06.13 689326 82719 1654 827 JOIST 72: 12 Inv 0531 08.07.13 SURYA ALLOY INDUSTRIES LTD. M AADCS5890EXM005 09.07.13 318038 38165 763 382 JOIST 721 13 Inv 0531 08.07.13 SURYA ALLOY INDUSTRIES LTD. M AADCS5890EXM005 09.07.13 306473 36777 736 368 CHANNEL 721 14 Inv 678 02.08.13 BABA ISPAT PVT. LTD. M AACCB4752FXM001 03.08.13 754453 90534 1811 905 ANGLE 721 15 Ä°nv 695 06.08.13 BABA ISPAT PVT. LTD. M AACCB4752FXM001 06.08.13 873362 104803 2096 1048 ANGLE 721 16 Inv 27011 01.1....
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....XM001 22.12.13 868216 104186 2085 1041 CHANNEL 721 36 Inv 906 24.12.13 BABA STRUCTURAL PVT. LTD. M AADCB1294PXM001 25.12.13 773828 92859 1857 929 CHANNEL 721 37 Inv 1563 15.01.14 BABA ISPAT PVT. LTD. M AACCB4752FXM001 16.01.14 760237 91228 1825 912 ANGLE 7216 Document 3 38 Inv -1766 25.02.14 BABA ISPR. P\T. LTD. M AACCB4752FXMC01 25.02.14 1703041 204364 .4087 2044 ANGIE 72: inv 1760 25.02.14 SURYA ALLOY INDUSTRIES LTD. M AADCS5890EXM005 26.02.14 1379753 165571 3311 1656 JOIST 72: 40 Inv 08562 01.03.14 | SHREE PARASHNATH RE-ROLLING MILLS LTD M AAGCS2108EXM001 02.03.14 489312 58717 1174 587 CHANNEL 72: 41 Inv 1801 02.03.14 SURYA ALLOY INDUSTRIES LTD. M AADCS5890EXM005 03.03.14 162120 19454 389 195 CHANNEL 72: 42 Inv 1180 02.03.14 BABA STRUCTURAL PVT. LTD. M AADCB1294PXM001 04.03.14 1181418 141770 2835 1418 CHANNEL 72: 43 Inv 08678 05.03.14 SHREE PARASHNATH RE-ROLLING MILLS LTD. M AAGCS2108EXM001 06.03.14 513554 61626 1233 616 ANGLE 721 44 Inv 1243 15.03.14 BABA STRUCTURAL PVT. LTD. M AADCB1294PXM001 16.03.14 1421164 170540 3411 1705 ANGLE 721 45 Inv 0052 08.04.14 SURYA ALLOY INDUSTRIES LTD. N AADCS5890EXM005 09.04.14 712555 85507 1710 855 JOIST 721 ....