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TMI Blog2017 (7) TMI 844X X X X Extracts X X X X X X X X Extracts X X X X ..... ry. We find that such observation has to be supported by material facts. The same is not available in the present appeal - appeal dismissed - decided against appellant. - Excise Appeal No.232/07, C.O.-42/07 - F/76328/2017 - Dated:- 12-7-2017 - Shri P. K. Choudhary, Judicial Member And Shri B. Ravichandran, Technical Member Sri K. Chaudhuri, Supdt. (A.R.) For the Appellant Sri K. Kurmi, Advocate, S.B. Sharma,Advocate Sri A. Sharma, Advocate For the Respondent ORDER Per: B. Ravichandran The Revenue is in appeal against the order dated 8/2/2006 of Commr. of Central Excise, BBSR-II. 2. The Respondent is engaged in the manufacture of Sponge Iron and other products liable to Central Excise Duty. They have commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied by their classification.In the present case, the credits were allowed on items which are classified under Chapter 72 which are of general nature and not identified as parts and accessories of any identifiable capital goods. He also relied on various cases to support his submissions. 4. The Ld. Counsel for the respondent supported the findings recorded by the original authority. He submitted that the nature and usage of these iron and steel items have been elaborately discussed in the impugned order. In fact, the various capital goods like conveyor belt, hopper, cooler, boiler etc. Have been specifically examined by the original authority. On such factual appreciation, applying the principle of user test and as laid down by Hon ble Su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vation has to be supported by material facts. The same is not available in the present appeal. Further, it is to be noted that whether iron and steel item is to be considered as part or component or accessory of capital goods can be decided by applying user test as decided in Jawahar Mills Ltd. (supra) and elaborated in CCE Vs. Rajasthan Spinning Weaving Mills Ltd. reported in 2010 (255) ELT 481 (S.C.). In fact, the ratio evolved by the Hon ble Supreme Court has been consistently followed by various High Courts as well as this Tribunal while deciding the disputes of similar nature. Admittedly, in large number of cases, the Tribunal as well as various High Courts allowed credit in similar set of facts. A reference can be made in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... machinery and are eligible for credit as capital goods. The Hon ble Madras High Court in Thuru Arroran Sugar- 2015- TIOL-1734-HC-Mad.CX held that credit on M.S. Plates, angles, channels utilized in construction/erection of plant were eligible for credit. The High Court observed that the principle laid-down by the Hon ble Supreme Court in Rajasthan Spinning and Weaving Mills Ltd. (Supra) is applicable to such situation. 7. We note that the Tribunal has been consistently following the ratio that the steel items when they are used in fabrication of capital goods and their accessories inside the manufacturer premises are eligible for credit by applying user test as evolved by the Hon ble Supreme Court in Rajasthan Spinning and Weavi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Hon ble Gujarat High Court in the case of Mundra Ports Special Economic Zone Ltd. 2015 (04) LCXO 197, wherein it was observed that the amendment made on 07.07.2009 cannot be held to be clarificatory and as such would be applicable only prospectively. 15. We find that the controversy can be laid to rest by making a reference to the decision of the Apex Court in the case of CCE, Jaipur Vs. Rajasthan Spinning Weaving Mills Ltd.- 2010 (255) ELT 481 (SC)- 2010-TIOL-51-SC-CX , wherein the Hon ble Supreme Court has considered an identical issue of steel plates and MS channels used in the fabrication of chimney for diesel generating set. The credit stands allowed in the light of Rule 57Q of the erstwhile Central Excise Rules, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which also deals with the scope of credit on similar items and also application of the concept of support structure while deciding the dispute. 7. Ld. A.R. also relied on the decision of Hon ble Supreme Court in the case of Saraswati Sugar Mills Vs. Commr. of C. Ex., Delhi-III [2011 (270) E.L.T. 465 (S.C.) and also the decision of Hon ble Allahabad High Court in the case of Daya Sugar Vs. Commr. of Central Excise, Meerut-I [2015 (316) E.L.T. 394 (All.) . We note that the decision of the Hon ble Supreme Court in Saraswati Sugar Mills dealing with provisions of erstwhile Rule 57Q and Notification of 65/95-CE were also examined by the Hon ble Madras High Court in the case of India Cements Ltd. [2011-TIOL-558 HC-MAD-CX . The observ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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