Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2018 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (12) TMI 548 - CESTAT CHENNAICENVAT Credit - Common inputs and input services used in manufacture of taxable as well as exempt goods - separate accounts not maintained - Tawas being cleared without payment of duty amounted to trading activity which, being an exempted service, Credit reversal is sought - Held that:- Merely because the Tawas are supplied by the job worker to the appellant and then cleared to the customer, the Department has taken the view that the clearance of Tawa is a pure trading activity. It has to be noted that inputs for manufacture of Tawa has been supplied by the appellant herein. So also the job work charges are paid as conversion charges to the job worker. These elements including the excise duty has gone into the assessable value of the pressure cooker which is cleared along with the free Tawa in the combo-package. This being so, the appellants have rightly availed the Credit on the inputs. The activity of supply of job worked goods to the principal manufacturer and thereafter, the clearance of the finished product, cannot be considered as a trading activity. Consequently, there is no requirement for the appellant to comply with the provision of maintaining of separate accounts as per Rule 6 of the CENVAT Credit Rules, 2004 - the Credit availed on the inputs used for the manufacture of Tawa is correct and proper. Appeal allowed - decided in favor of appellant.
|