Case Law Details
Shree Ganesh Metaliks Limited Vs Commissioner of CGST & CX (CESTAT Kolkata)
CESTAT Kolkata held that CENVAT Credit of steel items used for the purpose of setting up of coal washery plant is available applying the ‘user test’ principle.
Facts-
The Appellant is engaged in the manufacture of sponge iron falling under Chapter 72. For manufacture of sponge iron, coal is one of the major inputs. For the manufacture of the capital goods at coal washery unit, they purchased 47.195 MT of iron and steel materials such as MS Angles, Channels, MS Flats, Plates, CR Coils etc. all falling under Chapter 72.Coal washery is set up to wash raw coal for use in the manufacture of sponge iron. The Appellant manufactured specified capital goods such as Hopper, Conveyor, components, accessories of Crushing machine and EOT Cranes, which are specified capital goods in terms of various sub-clauses of Rule 2(a)(A) of the Cenvat Credit Rules,2004 Upon procuring the said inputs the Appellant in terms of the amended Rule 2(k), read with Rule 2(a)(A), read with Rule 3 of Cenvat Credit Rules, 2004 claimed Cenvat credit of Rs.1,97,090/- during the period from September 2013 to March 2014.
As per the physical verification report dated 20.02.2015 of emergent goods manufactured out of the impugned goods are specified capital goods under Rule 2(a)(A) and the impugned goods are inputs in terms of the amended provision of Rule 2(k) of Cenvat Credit Rules, 2004.
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