2018 (8) TMI 4

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..... Private Limited [2016 (9) TMI 682 - CESTAT NEW DELHI] the appellant is entitled to avail the Cenvat Credit on the Iron & Steel items used for supporting structures for making self manufactured Capital Goods but they are not entitled to avail the credit on steel items used for laying foundation - Adjudicating authority is directed to re-quantify the demand of Cenvat Credit to disallow the credit o .....

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..... ging that the appellant availed inadmissible Cenvat Credit on inputs i.e. Steel items used for laying foundation and for building supporting structures and also for making self-manufactured capital goods such as Hydraulic Press, Crane etc. The Adjudicating authority disallowed the Cenvat Credit of ₹ 21,23,438.00 along with interest and imposed penalty of equal amount of Cenvat Credit. .....

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..... reproduced below : 15. We find that the controversy can be laid to rest by making a reference to the decision of the Apex Court in the case of CCE, Jaipur v. Rajasthan Spinning Weaving Mills Ltd., 2010 (255) E.L.T. 481 (S.C.), wherein the Hon ble Supreme Court has considered an identical issue of steel plates and MS channels used in the fabrication of chimney for diesel generating set. The .....

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..... 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 .....

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..... e above discussion, the impugned order is modified in so far as the appellant is not entitled to avail credit on steel items used for laying foundation. As the matter involved is regarding the interpretation of provisions of law, the penalty imposed is liable to be set aside. The Adjudicating authority is directed to re-quantify the demand of Cenvat Credit to disallow the credit on the iron and st .....

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