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TMI Blog2019 (2) TMI 850X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in or in relation to the manufacture of capital goods or components, spares and accessories of the capital goods specified in terms of Rule 2(a) of Cenvat Credit Rules, 2004. 2. The factual matrix relevant for the purpose is that the appellant is engaged in manufacture of sponge iron and is also availing credit on various capital goods as well as inputs. The Department on the basis of the intelligence observed that the appellant availed cenvat credit on various structural items (as above) which are used in factory premises for the fabrication of supporting structures of kiln, burning chamber, conveyor gallery, fabrication of walkways of platform, staircases, shed, etc. Alleging the same as the wrongly availed cenvat credit that SCN No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... but the said decision stands over-ruled by the decision of the Hon'ble High Court, Chhattisgarh. Thus, while placing reliance upon said decision of Vandana Global Ltd. (supra), in the impugned Order, an error has been committed by Commissioner(Appeals). It is further impressed upon that even in the absence of decision of Chhattisgarh High Court that initially the Department itself vide the earlier Order-in-Original dated 26.03.2008 had granted the benefit of credit treating the disputed articles as the inputs. It is impressed upon that the impugned articles have been used no doubt to create a foundational support but for such machinery of the appellant without which the final product i.e. the sponge iron cannot be manufacture and the machi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... am of the opinion that the issue has been dealt by various adjudicating authorities and it has now been clearly settled that structures like Ms angle, Ms channels, Ms joists, chequered plates or similar steel structures used in fabrication of supporting structures if are merely the civil structures for supporting the machines/ apparatus used in manufacture of final product stands excluded from the definition of capital goods. But if such structures satisfies the "user test" principle as appreciated by Hon'ble Apex Court in Rajasthan Spinning & Weaving Mills Ltd. (supra) case, all these structural items are as good as spare parts of the capital goods as mentioned in Clause 3 of Section 2(a) of Cenvat Credit Rules, 2004 and thus are eligible ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmitted Chartered Engineer's Certificate dated 26.08.2007 regarding goods manufactured using impugned structural steel and the use of goods so manufactured, as is apparent from para 11 of the said Order. Once, the documents in the form of certificates and even in the form of designs and layout were already produced on record at the first stage of litigation it was highly unreasonable on part of the Commissioner(Appeals) to reject the Appeal merely on the ground of lack of the primary evidence as that of Chartered Engineer's Certificate, designs and layout etc. Also there was produced a report of Superintendent, Central Excise Range, Raigarh dated 11.09.2007 at the first round of litigation itself. It was verified in this report as well th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mills Ltd., reported in 2010 (255) E.L.T. 481) and in paragraph Nos. 7 and 8, held as follows : 8. After considering the use of the goods in question, in our considered view, the present case is covered by the decision of the Hon'ble Madras High Court in appellant's own case as referred above. We have also noticed that the Hon'ble Supreme Court in the case of Rajasthan Spinning and Weaving Mills Ltd. (supra) allowed Modvat credit on MS channels, steel plants etc. as capital goods used for erection of chimney for diesel generating set. The findings of the Commissioner that these are structures fixed to earth with concrete foundations and are immovable appears to be beyond the scope of the show cause notice. So, the case of M/s. Triveni Eng ..... X X X X Extracts X X X X X X X X Extracts X X X X
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