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2012 (4) TMI 201 - CESTAT, BANGALOREAppeals of the department against grant of CENVAT credit to the respondent in respect of MS plates, angles, channels, HR plates, coils, etc.to have been used for fabrication of capital goods,for repairs and maintenance (reconditioning) of plant and machinery - Held that:- the Second Explanation to the definition appears to work in favour of the respondent - Where the Second Explanation confers inputs status on goods used in the manufacture of capital goods which are further used in the factory, cannot be disputed that such status can be extended to goods used in the replacement of parts of capital goods, which process, in the present case, has been described as repairs and maintenance (reconditioning) - Cenvat Credit allowed. - in favour of respondent. Credit availed for fabricating supporting structures which in turn were used for erection of capital goods – Held that:- the appellant has a valid point in as much as, in the case of Saraswati Sugar Mills - 2011-TMI-204794-SUPREME COURT OF INDIA the Hon ble Supreme Court refused to recognize a structural support as capital goods under Rule 57Q of the erstwhile Central Excise Rules, 1944 - with the result that angles, sheets, plates, etc. in this case cannot be held to have been used as inputs in the manufacture of capital goods – in favour of Department. Whether the respondents are liable to be penalized on the ground of irregular availment of CENVAT credit on sheets, plates, angles, etc. used in fabricating structural support to capital goods – Held that:- is remanded to the original authority for fresh decision having regard to the findings on merits recorded
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