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2019 (5) TMI 1245 - CESTAT NEW DELHICENVAT Credit - inputs - heavy duty racks used in their factory where they are manufacturing wiring harness and battery cable/terminal - HELD THAT:- It stands held in various decisions that racks are required to be used for handling of raw materials as also their final product, which is a process integrally connected with the manufacture of final product and there is nothing in the definition of “input”, which would exclude the same. Even in terms of the said Exclusion (E), the goods, which have no relationship with the manufacture of a final product, have to be excluded from the definition of “Input”. As such, the criteria for exclusion is “relationship with the manufacture of final product”. Various decisions have held that the use of racks for storage of raw materials and finished goods is a process integrally connected with the manufacture of the final products. As such, the use of racks has to be held as related with the manufacture of the final product, thus, not making Exclusion Clause (E) is applicable. Extended period of limitation - HELD THAT:- The demand stands initiated against the appellant by invoking the longer period of limitation - In the light of the law declared by the Tribunal in various decisions holding that racks as cenvatable, the bonafide belief entertained by the assessee that such racks are cenvatable cannot be brushed aside. Otherwise also, the appellant was availing the credit by reflecting the same in their cenvat credit account, in which case, no malafide can be attributed to them so as to invoke the extended period - demand barred by limitation. Appeal allowed - decided in favor of appellant.
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