Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2015 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (6) TMI 1077 - AT - Central ExciseCenvat credit - whether cenvat credit can be taken by the appellant for the capital goods relates to some other plant, which was not operational at the material time and that the Cenvat Credit attributable to the capital goods of such other plant (Ethanol Plant) can be used for removal of sugar and molasses from the factory of the appellant - Held that:- the plant facilities, such as sugar molasses and Ethanol are situated within the same factory premises of the appellant and the factory as a whole has been registered under the Central Excise statute. Since the above final products are subjected to levy of central excise duty, the inputs and capital goods used/utilized for manufacture of the final product will be eligible for cenvat credit. Rule 3 of the Cenvat Credit Rules only specifies that the duty paid capital goods received in the factory of manufacture of final product will be eligible for availment of cenvat credit. There is no restriction contained in the said Rule that the capital goods used in the factory under construction situated within the common factory shall not be eligible for cenvat credit. Further, sub-rule (4) of Rule 3 of Cenvat Credit Rules permits the manufacturer to utilize cenvat credit on payment of duty of excise on any final product manufactured by him. On a close reading of Rule 3 and Rule 4 of the said rules, it transpires that no restrictions have been imposed that where the plant in a factory is not operational, the cenvat credit taken on the capital goods installed in the said plant will not be eligible for cenvat credit and the credit so taken shall not be eligible for utilization towards the other excisable goods manufactured and cleared from the said factory. Since no restrictions have been imposed in the cenvat credit rules for not taking the cenvat credit on the capital goods installed in the factory, where final goods have been manufactured by the appellant, the denial of cenvat credit is not justified. - Decided in favour of appellant
|