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TMI Blog2017 (6) TMI 846X X X X Extracts X X X X X X X X Extracts X X X X ..... redit was allowed thus the matter is to be reconsidered afresh, and credit was allowed subject to verification - credit allowed. CENVAT credit on M.S. Angles, Channels, Beams etc, - Held that: - issue is covered by the judgement of the Principal Bench of this Tribunal in Singhal Enterprises Pvt Ltd's case [2016 (9) TMI 682 - CESTAT NEW DELHI], where it was held that applying the “User Test” to the facts in hand, we have no hesitation in holding that the structural items used in the fabrication of support structures would fall within the ambit of ‘Capital Goods’ as contemplated under Rule 2(a) of the Cenvat Credit Rules, hence will be entitled to the Cenvat Credit - credit allowed. CENVAT credit on input services used for erection of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Gohil, Authorised Representative ORDER Per: Dr. D. M. Misra This is an appeal filed against OIA No. 135-136/2012(Ahd-III)/SKS/Commr.(A)/Ahd dated 10.10.2012 passed by the Commissioner (Appeals) of Central Excise and Customs Ahmedabad. 2. Briefly stated the facts of the case are that the appellant was issued with the SCN dated 05.05.2011 alleging wrong availment of CENVAT credit of ₹ 17,32,270/- on various counts. It was alleged that they had availed credit of ₹ 1,02,132/- on inputs/capital goods, which were used for erection of transmission line in bringing electricity from outside, to the factory premises, ₹ 4,93,821/- availed on M.S. Channels, Angles, Beams etc, which were used as supporting structure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd. Vs. C.C.E. S.T. Bhubaneswar II 2010 (25) ELT 545 (Tri-Kolkata), Synthetic Packers Pvt. Ltd. Vs. Commissioner of Central Excise, (Appeals-I), Bangalore 2009 (240) ELT 235 (Tri.-Bang.). In relation to credit availed on use of M.S. Angles, Channels, Beams etc., in fabrication of supporting structures inside the factory premises, the Ld. Advocate submitted that the same is covered by the decision of the Principal Bench in the case of S in ghal Enterprises Pvt. Ltd Vs. Commissioner of Central Excise Customs, Raipur 2016 (341) ELT 372 (Tri.-Del.). On the issue of utilization of input services for installation, and maintenance of transmission line, towers etc., outside the factory premises, ld. advocate has referred to the judge ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hority. The learned DR has sought disallowance of the same by citing the decision of the Larger Bench in the case of Vandana Global Ltd. (supra) and other judgments. Further, he has brought to our notice and emphasized the amendment carried out in Explanation-II to Rule 2(a) which defines the term Input w.e.f. 7-7-2009. It has further been pleaded that the Cenvat credit claimed for the period prior to this will be covered within the decision of the Larger Bench in the case of Vandana Global Ltd. (supra). 14. The Larger Bench decision in Vandana Global Ltd.'s case (supra) laid down that even if the iron and articles were used as supporting structures, they would not be eligible for the credit. Considering the amendment made w. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , etc. cannot be suspended in mid-air. They will need to be suitably supported to facilitate smooth functioning of such machines. It is obvious that the structural items have been suitably worked upon for this purpose. Accordingly, the goods fabricated, using such structurals, will have to be considered as parts of the relevant machines. The definition of Capital Goods includes, components, spares and accessories of such capital goods. Accordingly, applying the User Test to the facts in hand, we have no hesitation in holding that the structural items used in the fabrication of support structures would fall within the ambit of Capital Goods as contemplated under Rule 2(a) of the Cenvat Credit Rules, hence will be entitled to the Cenvat credi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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