2013 (6) TMI 299 - AT - Central Excise

Cenvat credit of duty paid on iron and steel items - denial of claim on finding that same stand used as supporting structurals and in terms of the declaration of law in the case of Vandana Global Ltd (2010 (4) TMI 133 - CESTAT, NEW DELHI (LB)) - Held that - As the appellant submits that the said items were used as supporting structurals only in some of the cases involving duty around Rs.45,000/- & the rest was used for fabrication of capital goods for which they are entitled to avail the credit & also placed reliance on Chartered Engineer certificate which was not produced before the authorities below and the said certificate relates to the requisite items reflecting upon the use of iron in fabrication of a particular product. Thus it is a fit case to dispense with the condition of pre-deposit of duty and set aside the impugned order and remand the same to the original adjudicating authority for verification of the factual position.

Summary

Issues:
Denial of cenvat credit on iron and steel items used as supporting structurals, entitlement to avail credit for fabrication of capital goods, requirement of Chartered Engineer certificate, setting aside the impugned order for verification of factual position.

Analysis:
The judgment pertains to the denial of cenvat credit amounting to Rs.10,27,602/- against the appellant for using iron and steel items as supporting structurals, based on the decision in the case of Vandana Global Ltd. vs. C.C.E., Raipur. The appellant's advocate argued that while some items were indeed used as supporting structurals, others were utilized for the fabrication of capital goods, making them eligible for the credit. The advocate referred to a Chartered Engineer certificate supporting this claim, although it was not presented before the lower authorities initially.

The presiding judge, Mrs. Archana Wadhwa, found merit in the appellant's argument and decided to set aside the impugned order. The judge deemed it appropriate to dispense with the pre-deposit of duty and remand the case to the original adjudicating authority for a thorough verification of the factual position. This decision signifies the importance of verifying the actual usage of iron and steel items to determine the eligibility for cenvat credit accurately.

The judgment concludes by disposing of the stay petition and the appeal in light of the decision to remand the case for further verification. This comprehensive analysis highlights the significance of proper documentation, such as the Chartered Engineer certificate, in establishing the legitimate use of materials for availing cenvat credit. The judicial approach emphasizes the need for a factual assessment to ensure fair treatment and adherence to legal provisions regarding credit entitlement in such cases.