2017 (8) TMI 543 - AT - Central Excise

CENVAT credit - HR Plates MS Beams MS Channels HR Cut Coils etc used for fabricating the supporting structure - Held that - as per the certificate issued by the Chartered Engineer that the HR Plates MS Beams MS Channels HR Cut coil were used towards fabrication of gantry and columns for EOT crane as well as towards fabrication of Re-heating furnace. The Division Bench of this Tribunal in the case of M/s. JSW Steel Ltd. 2017 (2) TMI 1071 - CESTAT Bangalore has held that the cenvat credit is availed on HR Plates and Sheets etc used for setting up of blast furnace and coke over plants - Since the facts are identical except for fabrication of Re-heating furnace in place of fabrication of blast furnace therefore by following the ratios of the above decisions credit is allowed - appeal allowed - decided in favor of appellant.

Summary

Issues:
Identification of capital goods for availing cenvat credit under Cenvat Credit Rules 2004.

Analysis:
The appellant, engaged in manufacturing excisable goods, availed cenvat credit on HR Plates, MS Beams, MS Channels, HR Cut Coils for fabricating supporting structures. The Department issued show-cause notices for irregularly availed credit, leading to confirmation of demand, interest, and penalty under Rule 15 of the Cenvat Credit Rules 2004. The appellant contended that the steel items were used for fabricating Gantry and Columns, components of EOT Cranes, falling under the definition of 'capital goods.' The Commissioner (Appeals) rejected the appeal, prompting the present appeals.

The appellant argued that the impugned orders misconstrued the definition of 'capital goods' and failed to consider the Chartered Engineer certificate confirming the steel items' use in fabrication. The appellant cited various decisions supporting their claim, including precedents from CESTAT Bangalore and other courts. The Department reiterated the findings of the impugned order.

Upon review, the Tribunal found the Chartered Engineer's certificate confirming the steel items' use in fabricating gantry, columns for EOT crane, and Re-heating furnace. Referring to precedents like M/s. Kalyani Steel Ltd. and M/s. JSW Steel Ltd., the Tribunal concluded that the impugned orders were unsustainable. Following the decisions' ratios, the Tribunal set aside the orders, allowing both appeals of the appellant.

In conclusion, the Tribunal's detailed analysis considered the definition of 'capital goods,' the Chartered Engineer's certificate, and relevant precedents to determine the eligibility of cenvat credit on the disputed steel items. The decision highlighted the importance of proper documentation and legal interpretation in availing tax credits under the Cenvat Credit Rules 2004.