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TMI Blog2016 (4) TMI 1219X X X X Extracts X X X X X X X X Extracts X X X X ..... vor of assessee. - E/51925/2015-[SM] - A/70313/2017-SM[BR] - Dated:- 13-4-2016 - Mr. Anil Choudhary, Member (Judicial) Shri Rajesh Chibber, Advocate for the Appellant (s) Shri Pawan Kumar Singh, Supdt. (A.R.) for the Department (s) Per Mr. Anil Choudhary. The appellant, M/s K.L. Steel Pvt. Ltd. manufacturer of excisable goods namely M.S. Shape Section etc., are in appeal against Order-in-Appeal No.GZB/EXCUS/000/APP/324/14-15 dated 16.01.2015 passed by Commissioner (Appeals), denying Cenvat Credit for ₹ 8,16,996/- availed on items being steel castings, bronze ingots, HR Plates, Shapes Sections, Billets, Round, I S Bars, Sq. Tools, asbestos sheet etc. falling under Chapter 72, 68 etc. 2. The SCN dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... observing that these items have extended mere facilitation in the plant being inputs/capital goods. These items have no connection with manufacturing activities. So far, the pictures of the fabricated items were filed alongwith copy of certificate issued by Chartered Engineer, that the said material were used within the factory, the Additional Commissioner observed that all items as used in the plant lacks name and description of items and their use in the plant and machinery. Further, the certificate of chartered engineer, which is without date and does not mention the date of visit to the factory, is not reliable. 3. Being aggrieved, the appellant preferred appeal before Ld. Commissioner (Appeals), who vide the impugned order was plea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal vide Order-in-Appeal No.GZB/EXCUS/000/APP/415/2014-15 dated 31.03.2015, and confirmed the issue, as to whether denial of Cenvat Credit availed on items like steel castings, bronze ingots, HR Plates, Shapes Sections, Billets, Round, I S Bars, Sq. Tools, asbestos sheet etc., falling under Chapter 72 and 68 of CETA as capital goods as per Law:- I have noticed that the impugned order has denied the Cenvat Credit on the grounds that the said items do not fall under the category of Components, Spares and accessories of the Capital goods or inputs of the Capital goods and the said goods appeared to have been used for construction of factory shed or used for making of structure for support of capital goods. The adjudicating authority ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation as the parts, components of the Metal Rolling Machine and fall under the purview of components spares and accessories of the goods specified at (i) of Rule 2(a) (A) CCR my findings are guided by the Hon'ble Tribunal's judgement in the case of M/s Shriram Hi Tech Steel Power Ltd Vs. CCE 2014(310) ELT 163 (Tri-Del), wherein the Cenvat Credit on the Sheets and M S rounds, used in the manufacture of the slagging spoons, required to remove slags floating on the molten metal and patching formers (hollow cylinders) required to protect the crucible coils from getting damaged by the molten metal's, was allowed. Similarly in the case under consideration, the items seems to have been used as such or fabricated/modified to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , cannot be denied just because they are under chapter heading not mentioned in the definition of Capital Goods, as these items are used as such or after modification/fabrication as parts in the metal rolling mills. Applying the user test in this case also, the use of such items, as certified by the Chartered Engineers, is for the manufacture of the final product, hence such items are part of the capital goods and Cenvat Credit is allowable. Penalty also cannot be imposed, as the appellant did not appear to contravene any provisions of Central Excise Law. 5. The Ld. A.R. for Revenue relies on the impugned order. 6. Having heard the rival contentions, I am of the view that it is an admitted fact that the appellants have utilized items ..... X X X X Extracts X X X X X X X X Extracts X X X X
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