2018 (4) TMI 828 - AT - Central Excise

CENVAT credit - MS angles, platform and MS plates and channels and GI structurals used in fabrication of capital goods - Held that - the eligibility of credit on these items or similar such items have been subject matter of various decided cases of the Tribunals, High Courts and Hon ble Supreme Court. By now, the legal position is to allow credit on various MS items which are used for fabricating capital goods or accessories and support structures of such capital goods - the decision in the case of Singhal Enterprises Pvt. Ltd. vs. CC & CE, Raipur 2016 (9) TMI 682 - CESTAT NEW DELHI referred - appeal allowed - decided in favor of appellant.

Summary

Issues:
Eligibility of Cenvat credit on various MS sheets, angles, platform, and GI structurals.

Analysis:
The appeals were filed against the order of the Commissioner of Central Excise (Appeals) regarding the eligibility of Cenvat credit on specific items. The impugned orders allowed credit on various items but disallowed it on certain MS angles, platform, plates, channels, and GI structurals. The appellant argued that these items were essential for fabricating accessory/support structures for capital goods, making them eligible for credit. The Tribunal noted that there was no finding that these items were used for civil structures, and similar items had been allowed credit in previous cases.

The Tribunal considered the usage of MS angles, plates, channels, and GI structurals in fabricating capital goods or their support structures as essential for stability and functionality. It was observed that the impugned order allowed credit on fabricated grating steel materials that served a similar purpose as the platform in question, leading to the conclusion that there was no basis to disallow credit on the platform. The appellant's explanation of using the platform for filtering raw materials was deemed valid based on the usage of similar materials for filtering purposes.

The Tribunal referenced various decisions from Tribunals, High Courts, and the Supreme Court that supported allowing credit on MS items used for fabricating capital goods or their support structures. The legal position established through these cases was clear in favor of granting credit on such items. Considering the arguments presented and the legal precedents, the Tribunal found that the impugned orders were unsustainable. Consequently, the orders were set aside, and the appeals were allowed, granting the appellant the Cenvat credit on the disputed items. The decision was dictated and pronounced in open court.