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2023 (11) TMI 58 - CESTAT CHENNAIReversal of CENVAT Credit as per provisions of Rule 3 (5) of Cenvat Credit Rules, 2004 - clearance of transformer oil ‘as such’ along with final product - HELD THAT:- From the flow chart produced by the learned counsel for the respondent, it is evident that the transfer oil purchased by them has been used for inspection and testing during the process of manufacture. The adjudicating authority in para-12 has considered the use of transformer oil in the inspection and testing stage of manufacture of transformer - While dispatching the transformer, required quantity of transformer oil is filled and the balance required quantity is cleared in barrels along with transformer. On perusal of the impugned order, it is found that the reason for holding that the credit need not be reversed is not merely because the value of inputs (transformer oil) has been included in the assessable value but also upon the fact that the transformer oil is used in the process of manufacture for inspection and testing of transformers and not cleared ‘as such’. The transformer oil purchased by the respondent was used inside the factory in the process of manufacture and only for convenience has been transported in barrels along with finished product. The transformer oil is not cleared ‘as such’ - there are no grounds to interfere with the impugned order. The same is sustained. The appeal filed by the Department is dismissed.
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