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TMI Blog2017 (1) TMI 1077X X X X Extracts X X X X X X X X Extracts X X X X ..... where it was held that credit on MS items used for fabricating support structure of machinery and equipment is eligible - the denial of credit is unjustified - appeal allowed - decided in favor of appellant. - E/21975/2015, E/21976/2015, E/21980/2015 - A/31510-31512/2016 - Dated:- 20-12-2016 - Ms. Sulekha Beevi, C.S., Member(Judicial) Shri. B. Raghavendra, Advocate for the Appellant Shri. P.S. Reddy, Assistant Commissioner (AR) Shri. Nagraj Naik, Deputy Commissioner (AR) for the Respondents ORDER [ Order per: Sulekha Beevi, C.S. ] The issue involved in these three appeals being same, they were heard together and are disposed by this common order. 2. The appellants are inter-alia engaged in manufacture of Sponge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty. After due process of law, the original authority confirmed the demand, interest and imposed equal amount of penalty. The appellants carried the issue in appeal before the Commissioner (Appeals) and vide the order impugned herein, the Commissioner (Appeals) allowed part of the credit and disallowed credit of ₹ 5,57,140/- in appeal No. E/21975/2015, ₹ 5,78,829/- in appeal No. E/21976/2015 and ₹ 5,37,569/- in appeal No. E/21980/2015. The period of dispute, the date of Show Cause Notices and the amount of credit denied as well as penalty imposed are shown below as tabulated by the appellant. Parties Name M/s. Ramanjaneya Ispat M/s. SLV Steels Alloys M/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ablish the usage of steel items used for fabrication of capital goods. He submitted that the Commissioner (Appeals) has allowed credit in respect of items shown from Sl. No. 1 to 32, but denied the credit in respect of Sl. No. 33 shown in the statement of chartered engineer. The credit in respect of Sl. No. 33 as shown in the chartered engineer certificate pertains to Supporting structure for Kiln equipments, Conveyor Systems, Pollution Control equipment and Bunkers . He submitted that the original authority called for a report from the Range Officer which is discussed in the Order-in-Original. The Ld. Counsel submitted that the appellant has not availed credit on the MS items used for construction of plat form or laying of foundations. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Appeals) has analysed the evidence as well as reply to the Show Cause Notice and allowed credit on items in Sl. No. 1 to 32 as shown in the chartered engineer s certificate. In the items noted in Sl. No. 1 to 32 the chartered engineer has mentioned items like structural Conveyor galleries, structural Kiln controllers, structural Pollution control, Chimney etc. That the credit in regard to structural items have been allowed and therefore the credit in respect of Sl. No. 33 for MS items used for support structure has been rightly denied. Sl. No. 33 pertains to supporting structures to Conveyor, Kiln and Pollution Control equipments. The credit in respect of Sl. No. 33 has been rightly disallowed for the reason that it pertains to structural ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he supporting structures, the Kiln, Conveyor, Pollution Control equipments cannot be erected and cannot be put into function. The issue has been analysed in the case of India Cement Ltd., (supra) case relied upon by the counsel for appellant. The Honorable Madras High Court has relied upon the judgment of the Honorable Apex Court in the case of CCE Vs. Rajasthan Spinning Mills Ltd., [2010 (255) ELT 481 (S.C.)] and held that credit on MS items used for fabricating support structure of machinery and equipment is eligible. Paragraphs 7 8 of the said decision of the Honorable Apex Court has been quoted by the Honorable High Court of Madras in which it has been observed that the MS Angles, MS Beams, etc., used in erection of machinery become c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls under Chapter 84, as mentioned in Serial No. (i) of Rules 2(a) (A). Thus, the items in question are covered in serial No. (iii) of Rules 2(a)(A) of the Rules, C.B.E. C. has clarified that all parts, components, accessories which are to be used with capital goods in serial (i) and (ii) of Rules 2(a)(A) and classifiable under any chapter heading are eligible for availment of CENVAT credit. A plain reading of serial (iii) cannot lead to a different conclusion either. After considering the use of the goods in question, in our considered view, the present case is covered by the decision of the Honorable Madras High Court in appellant s own case as referred above. We have also noticed that the Honorable Supreme Court in the case of Raj ..... X X X X Extracts X X X X X X X X Extracts X X X X
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