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TMI Blog2018 (3) TMI 622X X X X Extracts X X X X X X X X Extracts X X X X ..... e articles of Iron & Steel items - appeal dismissed - decided against Revenue. X X X X Extracts X X X X X X X X Extracts X X X X ..... etc. which are components or accessories of Capital Goods. The Adjudicating authority passed the Order relying on the decision of the Larger Bench of the Tribunal in the case of Vandana Global Limited Vs. CCE [2010 (253) ELT 440 (LB)]. 5. I find that the Commissioner (Appeals) passed the Order after examining the Case Laws, Jurisdictional Range Officer s Report and the use of the items. The relevant portion of the findings of the Commissioner (Appeals) are reproduced below : "....5.9 In terms of the position as laid down in various quasi-judicial/judicial forums referred at para 5.6 and 5.7 above, the test to be applied in the impugned matter is whether, without the impugned structural materials, the machinery could be erected and be m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... components while some others as supporting structures. 5.10 It is obvious that the impugned goods such as like Chimney and Chimney pipes, Roller Conveyor, Cooling Tower pipeline, Water pipeline, Cooling Bed strips, Looping Tray , Base frame of re-heating Furnace, Base Rails, Panel Board etc. cannot be self standing and would require some support structural items for them to function. I do not see any findings in the impugned O-I-O that distinguish the impugned items and establish that their usage was not essential to the functioning of the impugned Capital goods, the manufacturing operations and merely a structure for support of material used for support or embedding to the earth. I would note that the Hon'ble Tribunal in Commr. of Cust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (330) ELT 711 (Tri-Del) allowed the credit on the articles of Iron & Steel items. The relevant portion of the said decision is reproduced below - 7. These steel items used in this manner by the appellant has not been factually disputed. However, the point of dispute is that the resultant fabricated items became part of structures which are embedded to earth and become immovable, thereby losing the name of goods . Hence, Revenue contends that these items used are outside the purview of capital goods or inputs. We find that the Hon'ble Supreme Court evolved user test to answer the question whether the items falls within the purview of capital goods and held that in the case of Rajasthan Spinning Mills (supra) that steel plates and MS chann ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) or Thermo Mechanically Treated bar (T.M.T.) and other items are used in the construction of factory shed, building or laying of foundation, the duty paid on such items the assessee would not be entitled to Cenvat credit. Similarly, though the assessee is entitled to Cenvat credit of cement and steel used in the manufacture of capital goods viz., storage tank, if any structure for support of capital goods is constructed and steel and cement is used for such support, the assessee is not entitled to the benefit of Cenvat credit on the duty paid on such cement and steel. Therefore, there is no ambiguity in any of these provisions. When once a storage tank and pollution control equipment constitutes capital goods and any raw material purchased ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ground that these items are merely structures giving support to conveyor system. We find that conveyor system as a whole is rightly categorized as capital goods and unless it is established that certain structures are not part of the conveyor system, mere allegation that certain steel items are only supports will not be sufficient to deny the credit. Similarly, the allegation that silo is merely an item which was for receiving finished product and is not used for processing the goods is misleading and contrary to facts. Silo is a storage facility of the finished goods and it is a fact that silo is a storage tank included as a capital goods in the overall scheme of manufacture of final product. 6. The Learned Counsel also relied upon the f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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