2017 (9) TMI 150 - AT - Central Excise

CENVAT credit - whether the appellants are eligible to avail cenvat credit on the duty paid viz; Structural Steel/ MS Beam, Base Plate, base Frame, Structure for creel loading system, Lighting Protection Mat etc. claimed to have been used as structures for capital goods? - Held that - similar issue decided in the case of M/s. Singhal Enterprises Private Limited Versus The Commissioner Customs & Central Excise, Raipur 2016 (9) TMI 682 - CESTAT NEW DELHI , where it was held that applying the User Test to the facts in hand, we have no hesitation in holding that the structural items used in the fabrication of support structures would fall within the ambit of Capital Goods as contemplated under Rule 2(a) of the Cenvat Credit Rules, hence will be entitled to the Cenvat Credit. However, the Appellant should establish the said use by adducing evidences. In the result, the matter is remanded to the adjudicating authority to examine the claim of the appellant on the eligibility of credit on the aforesaid items - appeal allowed by way of remand.

Summary

Issues involved:
Whether the appellants are eligible to avail cenvat credit on specific items used as structures for capital goods.

Analysis:

Issue 1: Eligibility of cenvat credit on structural items
The main issue in this appeal is whether the appellants can claim cenvat credit on items like Structural Steel, MS Beam, Base Plate, etc., used as structures for capital goods. The appellant argues that credit is admissible as these items are used for holding various capital goods, citing a previous Tribunal judgment. However, they acknowledge the absence of a Chartered Engineer's Certificate to support their claim. On the other hand, the Revenue argues that without evidence, including the certificate, the claim cannot be supported. The Tribunal refers to a previous judgment to establish the eligibility criteria for such credit. The Tribunal emphasizes the need for the appellant to provide evidence, including the certificate, to verify the use of these items for capital goods. Consequently, the matter is remanded to the adjudicating authority for further examination, allowing the appellant to present additional evidence, including the Chartered Engineer's Certificate.

Conclusion:
The Tribunal allows the appeal by way of remand, directing the adjudicating authority to decide on the eligibility of cenvat credit for the items in question based on the evidence provided by the appellant, including the Chartered Engineer's Certificate. The principles established in previous judgments are to be considered in reaching a decision, keeping all issues open for further examination.