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2019 (8) TMI 1170 - CESTAT BANGALOREDemand of Interest and penalty - irregular availment of CENVAT Credit - input services used in the manufacture of exempted /non-excisable products - credit reversed as soon as being pointed out, before utilization - period April 2006 to December 2006 - HELD THAT:- The appellant had, without utilizing the credit reversed the same on being pointed out by the Department. Therefore, in terms of the ratio laid down by the Hon’ble High Court of Karnataka in the case of COMMISSIONER OF CENTRAL EXCISE & SERVICE TAX LARGE TAXPAYER UNIT, BANGALORE VERSUS M/S BILL FORGE PVT LTD, BANGALORE [2011 (4) TMI 969 - KARNATAKA HIGH COURT] no interest or penalty can be imposed upon the appellant. Reversal of CENVAT credit which has been taken before its utilization is as good as not taking the credit at all - Interest and penalty set aside. Demand of Central Excise duty - MS gratings - job-work - It is the case of the department that the appellant had got these MS gratings manufactured through job workers and they were, therefore, liable to pay central excise duty on these goods - assessee claims the goods to be capital goods and exempt from tax - HELD THAT:- It is true that as per the definition of capital goods in the CENVAT Credit Rules, 2004 only goods falling under Chapter 82, 84, 85 and 90 of the Central Excise Tariff are covered. However, components, spares and accessories of the aforesaid goods are also covered as capital goods in the definition itself. No restriction of the Central Excise Tariff heading of these components, spares or accessories is given in the definition - For this reason, the gratings manufactured by the appellant through their job workers and used in their plant mainly as stairs and platforms meant for workers to walk around and climb up and down in the plant, do qualify as accessories of the plant itself. Therefore, they get covered by the definition of Capital Goods - the exemption under N/N. 67/95-CE is available to them. Appeal allowed - decided in favor of appellant.
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