2018 (3) TMI 606

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..... ying the user test evolved by the Hon’ble Supreme court in the case of Rajasthan Spinning and Weaving Mills Ltd. [2010 (7) TMI 12 - SUPREME COURT OF INDIA], observed that pipelines cannot be made functional without properly securing them and these structural supports are integral part of such plant and machinery. The disallowance of credit is unjustified - appeal allowed - decided in favor of appellant.
Ms. Sulekha Beevi C.S., Member (Judicial) And Shri B. Ravichandran, Member (Technical) Shri V.S. Manoj, Advocate - for the Appellant Shri A. Cletus, Addl. Commissioner (AC) - for the Respondent ORDER Per: Ms. Sulekha Beevi, Brief facts are that the appellants who are engaged in manufacture of excisable products are also availing the .....

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..... re used as structural support for the tanks and pipelines. The tanks have to be placed at various heights and the raw material which is in liquid nature has to be carried through pipeline to various heights. MS items were used for structural support of the tanks and the pipelines. These are nothing but accessories of capital goods and therefore fall within the definition of capital goods. The ld. counsel submitted that the authority below has denied the credit merely relying upon the decision in the case of Vandana Global Ltd. - 2010-TIOL-624-CESTAT-DEL-LB, wherein it was held that credit is not admissible, as after fabrication, the MS items become part of the immovable property. He argued that the said decision is no longer a good law and .....

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..... se of Rajasthan Spinning and Weaving Mills Ltd. - 2010 (255) ELT 481 (SC), observed that pipelines cannot be made functional without properly securing them and these structural supports are integral part of such plant and machinery. Following the decision in the case of Thiru Arooran Sugars (supra), as well as the decision in the case of Rajasthan Spinning and Weaving Mills Ltd. (supra) and that of India Cements Ltd. - 2014-TIOL-1185-HC-MAD, we hold that disallowance of credit is unjustified. The impugned order is set aside and the appeal is allowed with consequential relief, if any. 6. The miscellaneous application filed for change of cause title of the name of the respondent to Commissioner of GST & Central Excise, Trichy is allowed. (D .....

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