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2006 (10) TMI 310 - AT - Central ExciseCenvat/Modvat - Capital goods - duty paid on the machines/ equipments of a sugar plant - HELD THAT:- We find that the facts of the present case are similar to those present in the case of Gujarat Ambuja Cements Ltd.[2000 (8) TMI 178 - CEGAT, NEW DELHI]. In this case also parts and components were bought/manufactured by the contractor and the invoices were issued in the name of the manufacturer of the final goods in whose premises the said parts and components were finally assembled and machinery installed. While in the case of Gujarat Ambuja Cements, the credit has been extended mainly on account of the fact that Rule 57T(7) did provide for availment of credit in case parts and machinery got erected through a job worker, the Tribunal did make an observation that the credit can be allowed under the provisions of Rule 57Q itself without taking resort to provision of Rule 57T(7). However, in the case of NRC Ltd.[2001 (6) TMI 114 - CEGAT, MUMBAI], the Tribunal did not refer to the provision of Rule 57T(7) and allowed the credit on the basis of Rule 57Q under which the parts and components of capital goods are also entitled to Modvat credit as inputs for the manufacture of goods to be produced out of such machinery for the installation of which such parts have been used. It has been further observed by the Tribunal that it is immaterial whether the payment for the components/accessories has been made by the contractor or the manufacturer of finished goods as it is the factory of the manufacturer of finished goods in whose premises components/parts of machinery is installed which in turn is used for the manufacture of finished dutiable goods. Similar definition of inputs for the purpose of capital goods exists in Rule 2(b) read with Explanation II of the Cenvat Credit Rules, 2002. We accordingly follow the same and hold that the appellants shall be entitled to the credit of duty paid on such components and parts which are used in the manufacture of sugar plant installed in their premises. The order of the Commissioner is accordingly set aside and the appeal is allowed.
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