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TMI Blog2020 (2) TMI 1251X X X X Extracts X X X X X X X X Extracts X X X X ..... ed Sheet Bar, M.S. Channels used for repair/maintenance of foundation frame of Return Bagasse Carrier (RBC)? 3. The appellants are engaged in manufacture of excisable goods viz. Sugar and Molasses. They availed Cenvat Credit of duty paid on items viz. M.S. Angles, M.S. Beams, M.S. Plate, M.S. Round Bar, H.R. Sheet, S.S. Plate (Cut Plate), Forged Sheet Bar, M.S. Channels etc. during the period November, 2013 to November, 2014. Since according to the department these items are neither capital goods nor input as defined in Rule 2(a) and Rule 2(k) of Cenvat Credit Rules, 2004, therefore Cenvat credit of duty paid on the said items is not admissible to the appellants and accordingly a show cause notice dated 21.11.2016 was issued to the Appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of Chhattisgarh at Bilaspur in the matter of CC,CE,ST, Bilaspur vs. Singhal Enterprises Pvt. Ltd.; 2018(359) ELT 313 (Chhattisgarh) to buttress his submission that applying the 'User Test' to the facts in hand, the steel items used in fabrication or repair of foundation frame would fall within the ambit of 'Capital Goods' under Rule 2(a) and are eligible for Cenvat Credit. He also raised the issue of extended period of limitation. According to learned counsel denial of credit on steel material used in repair/maintenance of the foundation/base frame of RBC by treating them as falling under the exclusion clause as per Rule 2(k) is illegal especially when the appellants had taken the credit on the said steel being capital goods. Per contra l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the fabrication of support structures would fall within the ambit of 'Capital Goods' as contemplated under Rule 2(a) hence will be entitled to the Cenvat Credit. The eligibility of various iron and steel items for Cenvat credit, when used in the fabrication of capital goods, technological structures associated with capital goods, have been subject matter of various decisions by the Tribunal. "User Test" is found to be the appropriate test to see whether the items used in the repair/fabrication of support structures would fall within the ambit of 'Capital Goods' as contemplated under Rule 2(a) ibid. It is no doubt true that any machinery without its proper installation would not function to the satisfaction level, in order to achieve the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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