2025-VIL-1864-CESTAT-KOL-CE
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CENTRAL EXCISE CESTAT Cases

Central Excise - Eligibility for CENVAT Credit on Iron and Steel Items Used for Fabrication and Erection of Capital Goods - The appellant, a manufacturer of steel products, utilized various iron and steel items such as MS Flats, Beams, Channels, Plates, Angles, MS Bar & Rods, structures, rounds, etc. for fabrication and erection of capital goods in its factory premises - Department denied the credit, relying on the Larger Bench decision in Vandana Global Ltd. v. CCE, Raipur, which held that goods used for constructing the foundation or support structure of capital goods cannot be treated as spares, components or accessories of capital goods, as well as inputs - Whether the appellant is eligible to avail CENVAT Credit on the iron and steel items used for erection and fabrication of capital goods – HELD – The decision of the Larger Bench in Vandana Global Ltd. has been overruled by the Chhattisgarh High Court, which held that goods used in fabrication of structures embedded to earth should be treated as 'inputs' for capital goods and CENVAT Credit cannot be denied - The iron and steel items used for fabrication and erection of capital goods are eligible for CENVAT Credit as 'inputs'. The items in question were not used for foundation, construction of factory or support structure, but for fabrication of capital goods, which is an integral part of the manufacturing process. Therefore, the appellant is eligible to avail CENVAT Credit on the iron and steel items used for fabrication and erection of capital goods – The impugned order is set aside and the appeal is allowed
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