2018 (3) TMI 99

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..... t was held that 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 - appeal allowed - decided in favor of appellant.
Dr. D.M. Misra, Member (Judicial) Present Shri J. Surti, Advocate - for the Appellant Present Shri L.Patra, A.R. - for the Respondent-Revenue ORDER Per: Dr. D.M. Misra This appeal is filed against OIA No.AHM-exxcus-002-APP-132-14-15 dated 26.8.2014 passed by the Commissioner (Appeals I), Central Excise, Ahmedabad. 2. Briefly stated the facts of the case are that allegi .....

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..... .). It is 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 has further been pleaded that the Cenvat credit claimed for the period prior .....

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..... ar 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 relevant machines. The definition of 'Capital Goods' includes, components, spares and accessories of s .....

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