TaxTMI 
TaxTMI 
2025 (11) TMI 596
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....s iron and steel items falling under Chapter 72, 73 and 83 of the Central Excise Tariff Act, 1975, ('impugned goods') for the purpose of setting up the manufacturing division of the appellant-assessee. Such impugned goods were used for the fabrication of capital goods and also its foundation and support structure. The assessee availed CENVAT Credit on these items by treating them as inputs or capital goods for setting up of their plant, as per the provisions of CENVAT Credit Rules, 2004. 1.2 In the course of further investigation by the Department, the assessee submitted a Chartered Engineer's Certificate dated 10.03.2012 showing details of consumption details of impugned goods. On 27.03.2012 and 28.03.2012, a joint verification was carried out at the said factory premises by the Jurisdictional Range Superintendent along with the representative of the Assessee and a physical verification report dated 09.04.2012 containing Annexure-I, Annexure-II & Annexure-III was prepared. It was gathered that various items of steel were consumed in civil construction or making foundations for various Capital goods or components of CHP/FTP/Boiler or making various supporting structures embe....
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....Joists, Nuts & Bolts, and electrodes for making the foundation of different plant and machinery, which were allegedly not eligible for availing CENVAT Credit. In this regard, the appellant's contention is that the issue of eligibility of CENVAT Credit on inputs and capital goods used for constructing foundations of capital goods and fabrication of capital goods is no longer res integra as various tribunals and courts have allowed such credit. The Ld. Counsel for the assessee-appellant cites the decision of CESTAT, Kolkata in the case of M/s. Super Smelters Ltd. (Unit-III) v. Commissioner of Central Excise & Service Tax, Bolpur [2025 (9) TMI 478 - CESTAT Kolkata], wherein, for the period from April 2012 to February 2015, the Tribunal has allowed the CENVAT Credit on HR Coils, MS Plates, Angles, Channels, Welding Electrodes etc., which were used for the fabrication and erection of capital goods and also observed that 'structural supports' are essential for the functioning of the capital goods and accordingly CENVAT Credit is to be allowed. The appellant-company also relies upon the decision of the Tribunal in the case of M/s. Rexon Strips Ltd. v. Commissioner of CGST & Central Excise....
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....the Revenue has inter alia made the following submissions: - (i) The ld. adjudicating authority has based his findings relying on the statement dated 26.04.2017 (Annexure-1 & 2) submitted to the Superintendent (Adjudication) showing the nature of "use of the Capital Goods" and "description of the Capital goods manufactured using such inputs". But the said statement showing use of the input/capital goods is not backed by a Chartered Engineer's Certificate. (ii) The ld. adjudicating authority has not mentioned categorically against which use of TMT, the credit is allowed and against which the credit has been disallowed. It appears that the adjudicating authority has allowed credit on TMT used for "joining Pot Shell in Pot room to earth" and "to Hold Silo it Potroom for feeding alumina in pots". (iii) A perusal of joint verification report dated 26.4.2017 pertaining to Inputs(Annexure-II) use of TMT/TOR rods shows Description of Capital Goods Manufactured using such inputs as "Foundation Pot room" "Foundation CPP" "Foundation-Rodding" "Supporting material for furnace at Cast House" "Supporting Structure Potroom". (iv) From available records, it ....
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....th," "To Hold Silo in Pot room for feeding alumina in pots" and "Foundation CPP" and "Foundation-Rodding" cannot be termed as supporting structure of Capital Goods as it cannot be considered as eligible capital goods /inputs and CENVAT Credit is not admissible on the same. (viii) The Hon'ble Apex Court in its order passed in the case of Saraswati Sugar Mills vs-CCE, Delhi - III [2011 (270) ELT 465(SC)] has held that structures being fixed to the earth cannot be construed as goods much less as excisable goods, hence credit of CENVAT Credit cannot be allowed. (ix) "Welding Electrode" being classified under chapter 83 is not specified capital goods. Credit has been allowed on Welding Electrode as input to capital goods. In the instant case welding electrodes have been used for fabrication of steel items and also repair and maintenance work. The subject goods i.e. Welding Electrode used for repair & maintenance purpose has no role to play in the manufacture of final products and therefore cannot be eligible for CENVAT Credit. (x) CBEC vide instruction No.F.No.267/11/2010-CX-8 dated 8.7.2010 at Paragraph 3 has clarified that credit shall also not be admissible....
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....ppellant is manufacturer of Sponge Iron, MS Billets, SS Billets, Silico Manganese, etc. The appellant had availed Cenvat Credit on HR coils, MS Plates, Angles, Channels, Welding Rods. On the ground that these items do not qualify to be called as 'inputs' and welding electrodes are used in welding/jointing of various steel items and for fabrication and erection of various structures for the support of capital goods and machineries and are also used in the repair and maintenance of various equipment and machineries, a Show Cause cum demand Notice No. 15/COMMR/BOL/15, dated 22.04.2015 was issued towards inadmissible Cenvat Credit to the tune of Rs. 2,94,30,880/- for the period April 2012 to February 2015, Corrigendum/Addendum to Show Cause Notice was issued 06.03.2016 revising the demand to Rs. 3,03,23,553/-. The appellant submitted their detailed reply specifying the places wherein these goods were used in their manufacturing activity and towards fabrication of capital goods within their factory premises. ...... ..... 9. In the present case, all the goods in question under various Annexures to the SCN are no doubt, not direct inputs for manufacture of the finished g....
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....f CGST & Central Excise, Bhubaneswar [2024 (2) TMI 1515 - CESTAT Kolkata] wherein it was held that CENVAT Credit is eligible on the goods used for constructing support structure / foundation of the capital goods. While arriving at the said decision, the Bench has relied on the judgement of the Hon'ble Madras High Court in the case of Thiru Arooran Sugars v. CESTAT Chennai [2017 (355) E.L.T. 373 (Mad.)]. The relevant portion of the decision of the Tribunal reads as under: - "8. We find that there is no dispute on the facts of the case. The appellants have taken credit on various inputs like MS angle, MS channel, MS beam, joist, HR plate, MS plates etc. They have claimed that these goods have been used either in the manufacture of the capital goods or have been used for providing structural support for the capital goods. The Adjudicating Authority at page 15 and 16 has given a Table as to where these inputs have been used. The Superintendent has visited the factory and has seen the functioning of their capital goods. ....... 9. It can be seen from the Table that the items have been used in the conveyor system, iron ore silo, furnace gratings, induration fur....