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TMI Blog2017 (1) TMI 287X X X X Extracts X X X X X X X X Extracts X X X X ..... any capital goods. The same reasoning applies to TOR Steel which is used alongwith cement in creating these structures - the credit on cement and TOR steel availed by the appellant is not justifiable under Cenvat Credit Rules, 2004 - cement and TOR steel cannot be considered as inputs which are used in the fabrication or manufacture of capital goods - credit disallowed - appeal rejected - decided against appellant. - Excise Appeals No. 820, 860 of 2012 and 60114 of 2013 - Final Order No. 56193-56195/2016 - Dated:- 27-12-2016 - Dr. Satish Chandra, President And Shri B. Ravichandran, Member (Technical) S/Shri B.L. Narasimhan, Advocate (for Excise Appeals No. 820, 860/2012) Bipin Garg, Advocate (for Excise Appeal No. 60114 of 2013) f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #8377; 6,40,13,156/-. The items involved were cement (Rs. 2,35,27,036/-) and construction steel items (Rs. 4,04,86,120/-). 3. The learned Counsel for the appellant submitted that cement and TOR steel items were used in erection and fabrication of plant and machinery inside the factory. These were used for manufacture of capital goods falling under Chapter 82, 84 and 85. These were used in making support structures. Erection, installation and operation of huge machinery would not be possible without these supports. These items are to be considered as used in relation to manufacture of final products since without use of these items setting up of plant was not possible for manufacturing activity. Reliance was placed on the decision of Hon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ort does not make it that they will become components of such machinery. He further submitted that various case laws relied upon by the appellant are mainly with reference to structural MS Steel items used in specific fabrication with reference to various plant and machinery not with TOR/TMT steel used with cement. None of them deal with eligibility of cement used in construction in a manufacturing unit. 5. We have heard both the sides and perused the appeal records. At the outset we note that there are two categories of items in dispute for their eligibility of Cenvat credit. The first one is the cement used by the appellant in the construction activity. It is apparent that the cement is used in conjunction with second set of items TOR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inery for the purpose of identifying the cement and TOR steel as inputs used in the manufacture of capital goods. Such claim by the appellant is factually and legally unsustainable. 6. We note TOR steel is nothing but Cold Twisted Defermed (CTD) steel bars. CTD and Thermo Mechanically Treated (TMT) bars are basically used in civil construction work with cement for creation of permanent structures. The reliance placed by the appellant regarding non-applicability of the decision of the Tribunal in Vandana Global Ltd. (supra) is not relevant to the present case to decide the eligibility of cement and TOR steel for credit. When the usage of cement and TOR steel is admittedly for creation of various permanent civil structures, not to be consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant on the decision of Hon ble Supreme Court in Rajasthan Spinning Weaving Mills Ltd. (supra) is not appropriate for cement and TOR Steel. The Hon ble Supreme Court applied user test to decide on the eligibility of MS Plates and Channels used in fabrication of chimney for generator. Here in the present case, we note that the cement and TOR steel, which are basically construction raw materials, were essentially used in creation of RCC structures like floor, columns, rafts, retaining walls etc. which are nothing but RCC civil structures. They have a role and required in overall expansion of plant and machinery by itself will not make the cement and TOR Steel as cenvatable inputs which are to be used in the manufacture/fabrication ..... X X X X Extracts X X X X X X X X Extracts X X X X
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