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2014 (2) TMI 723 - CESTAT MUMBAICenvat credit - Job Work - Tools and tips not received back as such from the Job Worker within 180 - Capital Goods - Commissioner allowed credit - Held that:- In the show-cause notice (itself) these tools and tips has been held as 'capital gods'. Therefore, the revenue cannot be said, at this stage, that these tools and tips are not capital goods. As these tools and tips are capital goods and there is no bar under the Central Excise Acts or Rules that the capital goods cannot be sent to the job-worker. Therefore, the capital goods used in the factory of the job-worker are entitled for credit to the respondent. Although the capital goods could not be returned "as such" after the usage, in that circumstances also the credit cannot be denied. Further, there is no bar on the respondent to take away 50% of the CENVAT credit in the year of procurement of the capital goods and the remaining 50% in the subsequent year although they were in the possession of the job-workers. There is no bar in taking 50% of the CENVAT credit in the subsequent year as they are components of the capital goods and are covered under Rule 4(2)(b) of CENVAT Credit Rules, 2004 - Decided against Revenue.
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