2017 (9) TMI 1717 - AT - Central Excise

CENVAT Credit - MS angle, Channels, Plates, TMT Bars which has been used for fabrication of support structures for various machines including pollution control machinery - denial of credit on the ground that these are not supporting structures nor capital goods as per Rule 2 (k) or Rule 2 (a) of the CCR - Held that - The appellants have correctly availed the Cenvat credit on the items in question - reliance placed in the case of M/S J.B. DARUKA PAPER LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, LUCKNOW 2017 (9) TMI 448 - CESTAT ALLAHABAD , where it was held that Cenvat credit on that part of the HSD Bars, TMT Bars & MS Bars is also admissible which have gone into making of civil foundation to erect capital goods in the present case - appeal allowed - decided in favor of appellant.

Summary

Issues:
Denial of Cenvat credit on MS angle, Channels, Plates, TMT Bars used for fabrication of support structures for machines including pollution control machinery.

Analysis:
The issue in this case revolves around the denial of Cenvat credit on certain items used for the fabrication of support structures for machines, including pollution control machinery. The denial was based on the argument that these items do not qualify as supporting structures or capital goods under Rule 2 (k) or Rule 2 (a) of the Cenvat Credit Rules, 2004.

Upon hearing both parties, the Tribunal considered the appellant's own case for an earlier period where Cenvat credit was allowed. The Tribunal relied on the decision of the Hon'ble Madras High Court in the case of CCE, Tiruchirapalli vs. India Cements Ltd. and the Tribunal's decision in the case of Singhal Enterprises Pvt. Ltd. vs. CCE, Raipur. Citing these precedents, the Tribunal concluded that the appellants correctly availed the Cenvat credit on the items in question. Consequently, the impugned order denying the credit was set aside, and the appeal was allowed with any consequential relief deemed necessary.

In summary, the Tribunal's decision in this case highlights the importance of precedent and consistency in interpreting and applying tax laws, particularly concerning the eligibility of Cenvat credit on items used for the fabrication of support structures for machinery. The reliance on past decisions and legal principles played a crucial role in resolving the issue in favor of the appellant, emphasizing the significance of legal precedents in tax matters.