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TMI Blog2017 (10) TMI 327X X X X Extracts X X X X X X X X Extracts X X X X ..... d to the adjudicating authority to examine the claim of the appellant on the eligibility of credit on the aforesaid items - appeal allowed by way of remand. - E/12113/2014-SM - A/12240/2017 - Dated:- 28-8-2017 - DR. D.M. MISRA, MEMBER (JUDICIAL) For Appellant: Sh. Rahul Gajera (Advocate) For Respondent: Sh. J. Nagori, A.R. ORDER Per: Dr. D.M. Misra This is an appeal filed against order-in-appeal No.SUR-EXCUS-002-APP-295-13-14 dated 25.03.2014 passed by Commissioner (Appeals) Surat. 2. Briefly stated the facts of the case are that the appellant had availed CENVAT credit on M/s Channel, Angle, Beam, Structural Steel etc. used in fabrication of capital goods within the factory. Alleging that these items are not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n laying down the principle on the eligibility of credit on similar items observed as follows:- 13. Now we turn to the question, whether credit is admissible on various structural steel items, such as, MS Angles, Sections, Channels, TMT Bar, etc., which have been used by the appellants in the fabrication of support structures on which various capital goods are placed? The same stands denied by the lower authority. 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 ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 2001 (132) E.L.T. 3 (S.C.) , which is required to be satisfied to find out whether or not particular goods could be said to be capital goods. When we apply the user test to the case in hand, we find that the structural steel items have been used for the fabrication of support structures for capital goods. The appellants have argued that the various capital goods, such as, kiln, material handling conveyor system, furnace, 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 re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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