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2016 (11) TMI 1459 - CESTAT KOLKATACENVAT credit - Electrode Carbon Paste (ECP) - input/capital goods - case of Revenue is that ECP which is used in furnace for manufacture of finished goods, appears to be capital goods and thereby only 50% of credit is available during a financial year - Held that: - There is no denial of the finding of the Commissioner (Appeals) that the goods get consumed and contained in the Ferro Alloys - The tribunal in the case of Industrial Chemicals & Monomers Ltd. Vs. Collr. Of C.Ex., Madurai [1995 (6) TMI 184 - CEGAT, NEW DELHI], held that carbon paste used in manufacture of calcium carbide either as technical necessity or otherwise, and consumed therein. In the present case, the said Electrode Carbon Paste is in the nature of consumable as it gets consumed in the manufacturing process and also contain in the ferro alloys. Therefore, it cannot be said such goods is capital goods in terms of rule 2(a) of the said Rules - Electrode Carbon Paste used in the process of manufacture of ferro alloys is actually an input eligible for credit under rule 2(k) of the said Rules. Credit allowed - appeal dismissed - decided against Revenue.
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