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TMI Blog2018 (2) TMI 568X X X X Extracts X X X X X X X X Extracts X X X X ..... . 13,57,101.00 during the month of April 2007 on Angles, Channels and Joists as inputs. The Adjudicating authority disallowed the Cenvat Credit of Rs. 13,35,751.00 along with interest and imposed penalty of equal amount of Cenvat Credit. By the impugned Order, the Commissioner (Appeals) set aside the Adjudication Order on merit as well as on limitation. Hence, the Revenue filed this appeal.The Commissioner (Appeals) observed that the impugned items have been used in the manufacture of EOT Crane, Gas Cleaning Plant, Screen Vibrating System, Conveyer Gallery and Hopper etc. which were in turn used in the manufacture of final products. 3. The Revenue in the Grounds of Appeal stated that the assesse has claimed the manufacture of different Ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used the impugned order which allowed the credit on these items. We note that the usage of these items in various capital goods/parts and components of such capital goods fabricated in side the plant of the respondent, has been examined by the original authority. 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 mainl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h with reference to erstwhile Rule 57Q are also relevant. The Hon'ble Supreme Court in Jayaswal Neco Limited -2015 (319) ELT 247 (SC) allowed cenvat credit on railway track materials used for handling raw material processed goods. The Tribunal in Bellary Steel 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. pio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 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 clarifica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 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 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. In view of the above discuss ..... X X X X Extracts X X X X X X X X Extracts X X X X
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