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TMI Blog2016 (8) TMI 484X X X X Extracts X X X X X X X X Extracts X X X X ..... ing foundation there is no such report placed as part of RUD. In India Cements Vs. CESTAT, Chennai [2015 (3) TMI 661 - MADRAS HIGH COURT], the Hon ble High Court of Madras held that credit is admissible on MS items used for fabrication of structure support which forms the integral part of machinery. Therefore, by following the same, the impugned order calls for no interference. - Decided against the Revenue - Appeal No. E/2519/2012 - - - Dated:- 2-2-2016 - Ms. Sulekha Beevi, C.S., Member ( Judicial ) Shri R. Sekhar, Authorised representative for the appellant Shri P. Dwarakanath, Consultant for the respondent ORDER [ Order per: Sulekha Beevi, C.S. ] Revenue has filed this appeal challenging the order passed by Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ited the premises of respondent and reported that the impugned items were found to be used as supporting structures to the machinery installed in the factory. Further that respondent vide their letter dated 20/05/2010 have stated that the materials were used for support structure to the capital goods. That respondents suppressed these facts and that therefore the demand raised invoking the extended period is sustainable. He argued that Commissioner(Appeals) has erred in allowing credit holding that these materials are used for fabrication of essential structure/part of capital goods. In addition, it is submitted that the supplier of the items viz. M/s. Cetha Vessals Ltd. (CVL) has supplied the goods by classifying the goods wrongly under Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... components which are to be used essentially as a part of boiler system would be classifiable as parts of boiler only under Heading 8402 of CETA, 1985. It is further clarified that these structural components are nothing but the parts and accessories of boiler and that they would be covered by the definition of inputs under Rule 2(k)(ii) of CENVAT Credit Rules, 2004. That these structural components shall not be hit by the exclusion clause contained in the definition of inputs as these are not used for laying of foundation or making of structures for support of capital goods, but are essential parts of said boilers. 5. The Board has issued another Circular No.966/09/2012-CX-1 dt. 18/05/2012, on the same issue of classification of structur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods are parts of boilers. The circulars also have clarified that the items used for support structure of such boiler/capital goods are eligible for credit. There is no evidence adduced by the department to show that the boiler can function without the support structures. So also apart from a vague contention that Range Officer visited the premises and found that the MS items are used for laying foundation there is no such report placed as part of RUD. In India Cements Vs. CESTAT, Chennai [2015(321) ELT 209 (Mad)], the Hon ble High Court of Madras held that credit is admissible on MS items used for fabrication of structure support which forms the integral part of machinery. Following the judgment laid in the case of India Cements (supra), I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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