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TMI Blog2017 (10) TMI 608X X X X Extracts X X X X X X X X Extracts X X X X ..... against Revenue. - Appeals No. E/76000/2017 - Order No. FO/A/77456/2017 - Dated:- 11-8-2017 - Shri P. K. Choudhary, Hon ble Judicial Member Shri S. Mukhopadhyay, Supdt. (AR) for the Appellant Shri S. B. Sharma, Advocate for the Respondent ORDER Per Shri P. K. Choudhary Revenue filed this appeal against the order of the Commissioner (Appeals) where the adjudication order was set aside and the appeal of the Respondent assessee was allowed. 2. Heard both sides and perused the appeal records. 3. The Respondent assessee is engaged in the manufacture of Sponge Iron classifiable under Chapter 72 of First Schedule of the Central Excise Tariff Act, 1985. The Adjudicating Authority disallowed the CENVAT Credit on vario ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... We note that, in fact, the original authority taken into consideration the basic objection against the credit raised in the show cause notice. He also examined the factual application of these various iron and steel items as certified by the chartered engineer. We have examined the submissions of the Revenue which contested these findings. As already recorded, the main thrust of the argument of the Revenue is that the iron and steel items like angles, sheets, plates etc. were mainly used in the support structure of these heavy capital fabrications and will not satisfy the criteria of parts and components or accessories of such machinery. We find that such observation has to be supported by material facts. The same is not available in the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Alloys Limited Vs. CCE, Belgaum- 2005 (180) ELT 92 (Tri. Bang.)=2005-TIOL-290-CESTAT-BANG held that cenvat credit is available on HR sheet, angles, channels etc. used in fabrication and erection of technological structure and blast furnace and material handling system. Such supporting structure are also capital goods and the fact that they are embedded to earth is no reason for denying credit / credit on input usd. The Hon ble Punjab Haryana High Court in CCE, Jullandhar Vs. pioneer Agro Extracts Ltd. 2008 (230) ELT 597 (P H) held that channels and angles, joint of iron steel used for installation of batch vessel or essential plant and machinery and are eligible for credit as capital goods. The Hon ble Madras High Court in Thuru Arror ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich defines the term input w.e.f. 07.07.2009. 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 structural s, they would not be eligible for the credit, considering the amendment made w.e.f. 07.07.2009 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 Court in the case of Mundra Ports Special Economic Zone Ltd. 2015 (04) LCXO 197, wherein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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. 6. On careful examination , we also rely on decision of Hon ble Madras High Court in CCE, Salem Vs. Madras Aluminium Co. Ltd. 2017 (349) ELT 133 (Mad.) which also deals with the scope of credit on similar items and also application of the concept of support structure while d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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