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TMI Blog2017 (1) TMI 294X X X X Extracts X X X X X X X X Extracts X X X X ..... s CENVAT credit on steel items (Plates and M.S. Chennels) keeping in view of the user test - the appellant is be entitled to availment of Cenvat credit for the subject items - appeal allowed - decided in favor of appellant. - E/3490/2010-EX [DB] - 55894 /2016 - Dated:- 19-12-2016 - Mr. Dr. Satish Chandra, President And Mr. Ashok K. Arya, Member (Technical) Sh. Amit Jain, Ld. Advocate for the appellant Sh. Yogesh Agarwal, Ld. AR for the respondent ORDER Per Ashok K. Arya 1. The appellant, Shri Bajrang Power Ispat Ltd. is in appeal against Commissioner Raipurs order dated 24.06.2010 whereunder Cenvat amount totaling to ₹ 2,28,32,558/- (Rs. Two crore twenty eight lakhs thirty two thousand five hundred fifty ei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contractors using the aforesaid iron and steel items. The appellant has availed Cenvat Credit in respect of quantity of iron and steel products used in various projects in the factory. 4.2 The appellant was issued two Show Cause Notices (SCNs) proposing recovery of Cenvat credit availed on various iron and steel items and denial of exemption under Notification No. 67/95-CE on goods manufactured and captively consumed. Extended period of limitation was invoked in the first SCN, alleging suppression of material facts. 4.3 The Commissioner vide the impugned order dated 24.06.2010 sustained the subject Show Cause Notices, disallowing the Cenvat Credit and confirming the recovery accordingly. 5. Based on the appeal memorandum and writt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted that activities undertaken like cutting, bending, etc. of the iron steel items, amounts to manufacture and that dutiability of resultant product would be at a stage before its use as part of immovable structure as held by Larger Bench of Honble Tribunal in Mahindra Mahindra Ltd. Vs. CCE [2005 (190) ELT 301 (Tri.-LB)]. Since the impugned items have been used for fabrication of various parts/components of specified capital goods, their eligibility for credit is to be decided at the stage before they become part of immovable goods and subsequent use with capital goods which are embedded to earth would be of no consequence. v. The Honble Supreme Court in the case of CCE Vs. Rajasthan Spinning Weaving Mills Ltd. 2010 ELT 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Mills Ltd. (supra) allows CENVAT credit on steel items (Plates and M.S. Chennels) referring to the user testevolved in the case of Commissioner Vs. Jawahar Mills Ltd. 2010 (132) ELT 3 (S.C.). Honble Supreme Court in the case of Rajasthan Spinning Weaving Mills Ltd. (supra) inter alia observes as under: 13. Applying the user test on the facts in hand, we have no hesitation in holding that the steel plates and M.S. channels, used in the fabrication of chimney would fall within the ambit of capital goods as contemplated in Rule 57Q it is not the case of the Revenue that both these items are not required to be used in the fabrication of chimney, which is an integral part of the diesel generating set, particularly when the Pollution Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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