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2016 (1) TMI 59 - CESTAT NEW DELHICenvat Credit - input used for manufacture of capital goods to be used captive - Exemption under Notification No. 67/1995-CE dated 16/03/1995 - steel structures which are emerging are not capital goods - CENVAT Credit - Held that:- All the frames are essential 'accessory' of that machine with which it is installed. The third group is consist of chimney and flue duct. Chimney is used for emission of fumes and gases and flue duct is used for holding transferring gases for their emission through chimney. They are essential 'accessories' in the respondent plant. Therefore, all the 'impugned goods' as mentioned above are covered in the scope of term 'accessories' in the definition of capital goods at clause (ii) of Rule 2 (b) of the Cenvat Rules because they are specifically designed, fabricated/manufactured as per specific technical requirements and they are technological necessity of the plant for the manufacture of Iron and steel products in respondent's factory and they are essentially required for running the plant and machinery. Since no evidence has been adduced to establish that these goods have not been used in the factory of manufacturer and therefore the respondent has complied with the condition of Rule 2 (b) of Cenvat Rules that "such goods should be used in the factory of the manufacturer of final product" It is not possible to compare Steel Support Structures of Conveyors to Crane Girder, Crane Column in as much as the later items are very much part or accessories necessary for functioning of the Crane, Mere allegation that impugned goods are used in foundation or construction platform is not sufficient to deny the benefit in view of specific and categorical findings of both the lower Authorities. - Decided against Revenue.
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