2018 (3) TMI 692

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..... t Rules, hence will be entitled to the Cenvat Credit. Even though in principle, the appellant are eligible to credit, however, the use of the said item is not supported by evidence, hence, the matter is remanded to the adjudicating authority for verification of the said facts - appeal allowed by way of remand. - Appeal No. E/10272-10273/2018 - ORDER No. A/10506-10507/2018 - Dated:- 26-2-2018 - Dr. D. M. Misra, Hon'ble Member (Judicial) For the Appellant : Shri S. Jhajharia, Advocate For the Respondent : Shri K. J. Kinariwala, AR ORDER Per : Dr. D. M. Misra These two appeals are filed against OIA No. CCESA-SRT(APPEAL/PS-83/2017-18 dated 16.10.2017, CCESA-SRT(APPEAL/PS-81/2017-18 dated 16.10.2017 passed by Comm .....

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..... he 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 to this will be covered within the decision of the Larg .....

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..... e 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 such capital goods. Accordingly, applying the User Test .....

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