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2014 (3) TMI 784 - AT - Central ExciseCenvat Credit - Classification - Inputs or capital goods - 100% credit at once - whether Lithographic Plates and Thermostar are to be treated as inputs or capital goods - Held that:- what was input prior to introduction of definition of capital goods and Modvat credit for capital goods does not become capital goods once the definition of capital goods is given and credit is made available for capital goods also. Further, I take note of the fact that as and when a printing order is received, the printer has to take a plate, expose and develops the material on that plate and then proceed to print the matter. That being the position, the Lithographic plate, chemical etc. used for printing would all become inputs for the offset printing process and we cannot say that Lithographic plate alone would not be input just because the same can be used repeatedly. Just like other inputs, the Lithographic plate also is relevant only for a particular job which the printer undertakes and the job may be repetitive but the fact remains that the plate cannot be used for any other purpose. Moreover, the printers charges for cost of Lithographic plate, exposure and development cost used by them separately. In any case, the cost of the Lithographic plate exposed and developed is recovered from the person for whom offset printing job is undertaken. All these factors would go to show that a Lithographic plate used by the appellant is an input for a particular offset printing job and that may be repetitive but cannot be said that like a capital goods Lithographic plate is used repeatedly. - Therefore, Lithographic plate cannot be considered as capital goods - Decided in favour of assessee.
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