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2014 (4) TMI 299 - AT - Central ExciseCENVAT Credit - Credit on tubes and flaps - parts and accessories of tyres - according to revenue, since the appellants were bringing these tubes and flaps as inputs in respect of the clearances made to OEMs and availing Cenvat credit, treating such clearances as clearances of inputs as such, the demand for differential duty (difference between the Cenvat credit taken and duty paid at the time of clearance) in respect of Trichur unit was made - Held that:- The tyres in question are not tubeless tyres. They required inner tubes as an essential item for functioning, the flaps are also useful and make the functioning of the tyres more convenient and trouble free. Therefore, while tubes can as well find place as part of component of tyre, the flap will clearly be an accessory - appellant’s claim of reversal of Cenvat credit at the time of clearance would amount to reversal of Cenvat credit availed on the tubes and flaps also is also valid - Following decision of Balakrishna Industries Ltd. vs. Commissioner of Central Excise, Jaipur-I [2007 (6) TMI 85 - CESTAT, NEW DELHI] - Decided in favour of assessee.
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