2017 (10) TMI 269

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..... 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 - appeal allowed - decided in favor of appellant.
DR. D.M. MISRA, MEMBER (JUDICIAL) For Appellant: None For Respondent: Sh. S.N. Gohil, A.R. ORDER Per: Dr. D.M. Misra None appeared for the appellant. Heard Ld. AR for the Revenue. 2. This is an appeal filed against order-in-appeal No.AHM-EXCUS-001-APP-066-16-17 dated 28.02.2017 passed by Commissioner (Appeals-I) Ahmedabad. 3. Briefly stated the facts of the case are that the appellant had availed CENVAT credit on Plate, Pipes, Beam, etc. used for fabrication of supporting structure to various c .....

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..... 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.e.f. 7-7-2009 as a clarification amendment and hence to be considered retrospectively. However, we find that the said decision of the Larger Bench was considered by the Hon'ble Gujarat High Cou .....

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..... 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 credit." 5. In the result, the impugned Order is set aside and the Appeal is allowed with consequential relief, if any, as per law. (Dictated and pronounced in the open court)
Case laws, Decisio .....

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