2017 (11) TMI 762

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... s’ as contemplated under Rule 2(a) of the Cenvat Credit Rules, hence will be entitled to the Cenvat Credit. The Appellant should establish the said use by adducing evidences - appeal allowed by way of remand. - E/10706/2016-SM - A/13339/2017 - Dated:- 27-10-2017 - D. M. Misra, Member (Judicial) For the Appellant : Mr. R. Santhanam (Advocate) For the Respondent : Mr. S.N.Gohil (A.R.) ORDER Per: Dr. D.M. Misra This is an appeal filed against order-in-appeal No.KCH-EXCUS-000-APP-037-15-16 dated 20.01.2016 passed by Commissioner (Appeals) Rajkot. 2. Briefly stated the facts of the case are that the appellant had availed CENVAT credit on Round Bars/ H.R. Plates/ M.S. Channels / M.S. Angles/ Parallet Falnge Colo .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... d that the Principal Bench at Delhi in Singhal Enterprises Pvt. Ltd's (supra) in laying down the principle on the eligibility of credit on similar items in its use as structural support to capital goods 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 o .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... gment, the Apex Court has referred to the user test evolved by the Apex Court in the case of CCE, Coimbatore v. Jawahar Mills Ltd., 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 worke .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X