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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 ..... o be said to be essential accessory in a plant/factory. The repair of the said frame is also equally important alongwith the machine. In COMMISSIONER OF CENTRAL EXCISE, RAIPUR VERSUS M/S JINDAL STEELS AND POWER LTD. [ 2016 (1) TMI 59 - CESTAT NEW DELHI] it has been held that the definition of Capital Goods includes components, spares and accessories of such capital goods and applying the User Test , the structural items used 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts 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 Appellants demanding Cenvat Credit of ₹ 6,46,976/- with interest and penalty. The same was adjudicated vide Order-in-Original ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 learned Authorised Representative reiterated the findings recorded in the impugned order and prayed for dismiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er 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 desired objective. I have seen the diagram of Bagasse Conveying System annexed by the Appellant in order to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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