Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2011 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (11) TMI 543 - CESTAT NEW DELHIDenial of CENVAT Credit - Invoices of repaired capital goods and not new capital goods - Held that:- The Cenvat credit, in question, had been taken by the respondent on the basis of an invoice issued by M/s. Jyoti Ltd. for repair of the rotor assembly. It is well settled that repair activity does not amount of manufacture and, as such, no duty should have been charged from M/s. Jyoti Ltd. on the repair of rotor assembly. But still when the department has collected duty from M/s. Jyoti Ltd. on the repair of rotor assembly and the payment of duty is evidenced by the invoice issued by M/s. Jyoti Ltd., its Cenvat credit cannot be denied to the respondent. The only way to deny the Cenvat credit in this case would be to revise the assessment at the end of M/s. Jyoti Ltd., refund the duty paid by them and only in that case the Cenvat credit could have been denied to the respondent, but this has not been done. Without revising the assessment at the end of manufacture of some inputs, the Cenvat credit cannot be denied at the end of the receiver of those inputs - Therefore, notwithstanding the fact that the repair activity of M/s. Jyoti Ltd. does not amount of manufacture, since the payment of duty by M/s. Jyoti Ltd. on this repair has not been reviewed by the department, the Cenvat credit cannot be denied to the respondent - Decided against Revenue.
|