2016 (2) TMI 148

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..... the said materials. In the present case, the appellant initially took a stand that these items were used in the machinery. In the Chartered Engineer certificate, it is certified that these items were used as components, spare parts of the machineries. So, it is required that the adjudicating authority should have examined the utilisation of the items and thereafter the order should have been passed. In view of the above discussions, the impugned order is set-aside. The matter is remanded to the adjudicating authority to decide afresh after examining the utilisation of these items.
P K Das, Member (J) For the Appellant : None For the Respondent : Shri Alok Srivastava, AR ORDER Per P K Das None appears on behalf of the appellants. 2. .....

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..... ed in the impugned order. 4. On perusal of the impugned order, I find that the appellant had took a stand that these items were used in making the machineries. The relevant portion of the impugned order is reproduced:- "3. The appellant unit has contested that the material viz. MS Angles/ Channel, HR Plate, Rounds, Joits etc. falling under Chapter 72 on which CENVAT credit has been availed were utilised for making machinery viz. Killen Machine, Part of machines, storage tanks, trolley, conveyer system, vessels, agitators, platform and technological structure which were subsequently utilised for workers to perform their work, storage and manufacture of excisable goods and hence Chapter heading of the said materials is not relevant. T .....

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..... d in an office; or (2) for providing output service." The capital goods as defined under Rule 2(a) of the Rules covers the components, spares and accessories of the machinery as specified in Clause (i) and (ii) of the said definition. In my considered view, the eligibility of the Cenvat Credit of capital goods is depending upon the utilisation of the said materials. In the present case, the appellant initially took a stand that these items were used in the machinery. In the Chartered Engineer certificate, it is certified that these items were used as components, spare parts of the machineries. So, it is required that the adjudicating authority should have examined the utilisation of the items and thereafter the order should have be .....

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