2020 (4) TMI 415 - AT - Central Excise

CENVAT Credit - inputs/capital goods - channel, sheets etc. - HELD THAT - The facts of the case are not in dispute that all the items in question has been used by the appellant for fabrication of capital goods. Therefore, the items in question has been used by the appellant for fabrication of capital goods which are inputs for the appellant and they are entitled to avail cenvat credit in terms of Rule 2(k) of Cenvat Credit Rules, 2004. Credit allowed - appeal allowed - decided in favor of appellant.

Summary

Issues:
1. Denial of cenvat credit on steel items.
2. Interpretation of Rule 2(k) of Cenvat Credit Rules, 2004.

Analysis:
1. The appellant appealed against orders denying cenvat credit on steel items like channel and sheets, claiming they were not considered inputs or capital goods under Rule 2(k) or 2(a) of Cenvat Credit Rules, 2004.
2. The Tribunal noted that the appellant used the steel items for fabricating capital goods, establishing them as inputs. This usage qualified for availing cenvat credit under Rule 2(k) of the Cenvat Credit Rules, 2004.
3. The Tribunal referenced a previous case involving the appellant where a similar view was upheld, reinforcing the entitlement to cenvat credit for using steel items in the fabrication of capital goods.
4. Consequently, the impugned orders were set aside, and the appeals were allowed with consequential relief, affirming the appellant's right to cenvat credit for the steel items utilized in the fabrication process.