2007 (7) TMI 520 - AT - Central Excise

Summary

Issues Involved: Denial of Modvat credit on beams, angles, channels, etc. as capital goods.

Issue 1: Denial of Modvat credit

The appeal was against the order denying Modvat credit to the respondent on certain items. The revenue contended that these items were used for the fabrication of structures for the factory shed, making them ineligible for Cenvat credit as capital goods. The Commissioner (Appeals) allowed the credit after considering the evidence presented. The Commissioner's order highlighted that the items were primarily used in the manufacture of structures for EOT cranes movement, with the shed being minor and incidental. The Commissioner concluded that the respondent was entitled to credit on the goods as "input," though not as "capital goods."

Conclusion:

The Tribunal upheld the Commissioner's decision, stating that the items in question were indeed used in the manufacturing process and were eligible for Cenvat credit as inputs. The appeal filed by the revenue was rejected, affirming the legality and correctness of the Commissioner's order.