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TMI Blog2023 (6) TMI 141X X X X Extracts X X X X X X X X Extracts X X X X ..... eal no. NGP/EXCUS/000/APPL/082/19-20 dated 18.09.2019. By the Impugned order Commissioner (Appeal) is held as follows: The Order-in-Original No. 422/N-I/18-19/D-H/AC/ADJ dated 31.03.2019 passed by the Assistant Commissioner, CGST Central Excise, Division-Hingna, Nagpur-I Commissionerate, Nagpur, is upheld and appeal filed by the appellant is disallowed. 2.1 Appellant is manufacturer of Refractory materials falling under chapter 3801 of the CETA, 1985. They manufactures Refractory Constables that are used for lining of the furnaces. These Constables are in powder or slurry form and applied manually inside the furnaces. They also manufactures pre-fired shapes and sizes that can be fitted at specified places inside the furnaces. 2.2 Revenue was of the view that appellant has taken Cenvat credit of Rs. 75,908/- on steel items such as Plate, Angles, Beam, Channels Rounds during the period 2008-09 to 2010-11. Revenue was of the view that these items do not fall within the category of inputs or capital goods nor are they used for the manufacture of the final product. Hence Cenvat credit is not available on such materials. The show cause notice dated 05.04.2013 was issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. 3.2 The matter was listed on 24.08.2022 directed the AR to submit the factual verification done in respect of documents availing along with the appeal at page no. 64 onwards. 3.3 Arguing for the appellant Learned Counsel submits that undisputedly they are the goods in dispute are used by them as inputs for manufacture of their final products and not for construction. The case of the revenue is based on treating these goods to be used for structure ETC is not correct as per the facts. Accordingly he has sought for factual verification. 3.4 Learned AR has submitted the factual verification report. On going through the factual verification report submitted by the concerned judicial officer is reproduced below: 2. On request being made by this office, M/s. Castwel Industries, C-18/6, MIDC Industrial Area, Nagpur vide its letter ref.no. CE/CI/2022-23/0234 dated 23 12.2022 submitted the photocopy of purchase order, specification drawings, internal job receipt, sales invoices and photograph on sample basis, which are relevant to issue in dispute. One set of these documents so submitted by M/s Castwel Industries are also submitted herewith for kind perusal of the Hon' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tachments (Page No. 29) says The prefabricated shapes of Order No. 30-2 (A, C, D, E, G H) and 30-8 Central Block and End Blocks shall be cast with metallic frames as given in drawing. The quality of metal frame shall be as per drawing 8. On perusal of Specification Drawing having No. D-3713413013 (Page No. 31) and D-3713413014 (Page No. 32), it is observed that it is for manufacture of Central Block 30-8 (FI-2 4) and Central Block 30-8 (FI-1, 2 5). It also indicates use of Round Bars, Plate, Flat and Angle, for framing of aforesaid Central Blocks and End Blocks. 9. The perusal of Job Receipt dated 18.05.2009 (Page No. 33) and 15.05.2009 (Page No. 34) indicates that under the cover of these documents, the items such as M.S.Angle, M.S.Plate and M.S.Rod were issued for manufacture of Precast Shapes with metal frame, for NALCO according to Drawing No. D-3713413042. 10. Further, the perusal of sample invoices of M/s Castwel Industries (Page No.35 to 39) indicates that the manufactured Precast Shapes, Central Blocks and End Blocks, all with metal frame, were dispatched to NALCO, as ordered by them. 11. The sample photograph (Page No. 40) is of a Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... these goods are used for the manufacture of capital goods which are subsequently used in the factory for production of excisable goods. However if these steel goods are used for construction for making foundation / fixed structure/platforms etc., then such goods are not eligible for the Cenvat credit.During the relevant period, there were unambiguous rules of Cenvat credit on steel items in terms of explanation-II to Rule 2(k) of the Cenvat Credit Rules, 2004. The Appellant has contravened the provision of Cenvat credit Rules. Reliance is placed in the case Commissioner of Central Excise, Lucknow Vs. RamgarhChini Mills [2018 (14) G.S.T.L. 340 (All.)] in the High Court of judicature at Allahabad, it was held that Cenvat credit- Inputs/Capital goods- M.S. items - Fabrication of structural support for capital goods Issue no longer res integra in view of judgment dated 10-1-2017 passed in Central Excise Appeal No. 21 of 2012 (Commissioner v. Bajaj Hindustan Limited)- Cenvat credit on M.S. Plates, M.S. Angles, M.S. Channels, Steel Sheets, Aluminium Sheets, Bars and Rods used as structural support in fabrication of tanks, pipeline for boilers, modification of plant, etc., not admissibl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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