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2023 (2) TMI 477 - CESTAT AHMEDABADCENVAT Credit - appellant carrying out part of process in Unit-2 on the machinery installed therein and after the entire process is done, Unit-1 is clearing the final products on payment of duty - Cenvat credit availed in respect of some spares and accessories of laser cutting machines which were used in Unit-2 - objection of the department is that since spares and accessories procured by Unit-1 is used in Unit-2 where the Laser Cutting machines was installed, the credit for the same is in dispute. HELD THAT:- The excisable goods manufactured and cleared from the appellant’s Unit-1, therefore, it is undisputed that the spares and accessories were used in or in relation to the manufacture of excisable goods of the appellant - Secondly, the similar issue has been decided in the appellant’s own case in respect of capital goods i.e. machineries installed in the Appellant’s Unit-2 in M/S EIMCO ELECON INDIA LTD. VERSUS C.C.E. & S.T. -VADODARA-I [2019 (1) TMI 173 - CESTAT AHMEDABAD] and Tribunal held that the essential condition for availment of credit as interpreted by various courts is that the capital goods should be used in or in relation to manufacture of the final product and even if the same are used outside the factory for the said purpose the credit cannot be denied so long as the said capital goods are not alienated by the appellant. Thus, demand do not sustain - the impugned order is set-aside and the appeal is allowed.
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