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TMI Blog2016 (8) TMI 536X X X X Extracts X X X X X X X X Extracts X X X X ..... han Spinning and Weaving Mills and India Cements. While considering the issue the Hon’ble Courts have taken the view that the machineries in a factory have to be properly supported and connected. Such structural supports are necessary for the machines to make them function without vibration or movement. In Divis Laboratories Ltd Vs CCE Viskahpatnam [2006 (1) TMI 312 - CESTAT, BANGALORE] it was held that the items like angles channels, beams pipes tubes etc. used as parts of technological structures which support a reaction vessel or used in particular equipment in the manufacture of bulk drugs was admissible. Cenvat credit - allowability - items for making canteen sheds - Held that:- claim of credit on MS items used for making canteen sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mposed equal amount of penalty. Aggrieved by the said order, the appellants have filed an appeal before the Commisisoner (Appeals) who vide the order impugned herein dismissed the appeal upholding the disallowance of credit but reduced the penalty to ₹ 50,000/-. Being aggrieved by the said order, the appellants have preferred this appeal. 2. The learned counsel for the appellant Sh. R Muralidhar submitted that the appellant had explained the manner of use of the impugned goods in fabrication/manufacture of capital goods, spares and accessories to capital goods. The MS angles /channels were used for fabrication in support to the technological structural bridge wherein the pipe line system laid down from utility block to production b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... production blocks, pipe line systems etc. The Commissioner(Appeals) has brushed aside this certificate stating that there are no supporting documents to evidence the use of these items in the manner stated in the certificate. It is further stated by the commissioner that even assuming that the appellants used the subject MS items for fabrication of support of structure to support pipe lines/heat exchangers/reactors distillation column/electrical cables they are permanently fixed on the ground or walls and are not eligible to avail the credit for structural items as these are not goods any more having been fixed to the ground. I am not able to agree with this view that the MS items used as support structure for capital goods/parts/componen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... count the facts and evidence presented by the case and applying the ratio laid in the above judgment I hold that the credit on MS items used by the appellant can be allowed except for the use in the making of canteen shed. The amount of credit availed on MS items used for canteen shed is disallowed. The appellant is directed to approach the Range Superintendent and produce necessary documents pertaining to the use of MS items in the making of canteen shed and shall reverse the credit availed on MS items used in canteen shed. 7. In view of the above, I make the following order: (i) The credit availed on impugned items used in making canteen shed is disallowed. (ii) The credit availed on impugned items other than canteen shed is a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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