2017 (12) TMI 140 - AT - Central Excise

CENVAT credit - input - M/s Channel, Angle, TMT Bars etc. used in fabrication of capital goods, supporting structures within the factory - Held that - the Principal Bench at Delhi in Singhal Enterprises Pvt. Ltd s 2016 (9) TMI 682 - CESTAT NEW DELHI in laying down the principle on the eligibility of credit on similar items 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. Since the Appellant has produced the Chartered Engineer s Certificate before this forum the matter may be remanded for verification of the said Chartered Engineer Certificate - appeal allowed by way of remand.

Summary

Issues: Appeal against order-in-appeal regarding eligibility of CENVAT credit on items used in fabrication of capital goods.

Analysis:
1. Facts of the Case: The appellant availed CENVAT credit on items like Channel, Angle, TMT Bars used in fabrication of capital goods within the factory. A Show Cause Notice was issued for recovery of a specific amount for a certain period. The demand was confirmed with interest and penalty by the Adjudicating Authority, which was upheld by the Commissioner (Appeals).

2. Appellant's Submission: The appellant argued that the items were used for erection of capital goods, making them eligible for credit as per the definition of 'input' under Rule 2(k) of CCR, 2004. They cited a judgment from the Principal Bench at Delhi to support their claim and provided a Chartered Engineer's Certificate as evidence of usage.

3. Revenue's Submission: The Revenue suggested remanding the matter to verify the Chartered Engineer's Certificate for authentication.

4. Principle from Previous Judgments: The judgment from the Principal Bench at Delhi in a similar case emphasized the eligibility of credit on items used in fabrication of support structures for capital goods. It discussed the applicability of amendments and referred to a decision by the Hon'ble Gujarat High Court regarding the retrospective application of certain amendments.

5. Decision: The Tribunal found merit in both parties' submissions and decided to remand the matter to the adjudicating authority for further examination. The appellant was directed to provide evidence on the usage of the items, and the adjudicating authority was instructed to decide based on the legal principles established in the referenced judgment. The appeal was allowed by way of remand, keeping all issues open for further consideration.