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2014 (5) TMI 908 - AT - Central ExciseCENVAT Credit - capital goods - movement (transport) of Hydrogen Gas Cylinder outside factory premises for refilling etc. - Held that:- A perusal of the of Rule 2 (a) (A) reveals that the only condition for availing CENVAT Credit on capital goods is their use within the factory of the manufacturer in the manufacture of final products. It is not disputed that the Hydrogen Cylinders are not capital goods. At present there is no requirement under the CENVAT Credit Rules that the capital goods must be installed in the factory of production. Evidently, hydrogen gas cylinders are used within the respondent s factory for manufacture of final products, although the cylinders move out temporarily from the appellant s factory for the purpose of refilling of hydrogen gas. Therefore, the requirement of use of capital goods within the appellant’s factory in terms of the said Rule 2(a)(A) is fulfilled. - Therefore, the temporary to and fro movement of Hydrogen Gas Cylinders for the purpose of refilling of hydrogen gas is otherwise covered by the above provisions of the CENVAT Credit Rules, 2004 - Further, reversal of credit at the time of removal of Cylinders and taking of credit at the time of receipt of duly filled Cylinders will not help Revenue in raising any Revenue as it is Revenue neutral exercise - Decided against Revenue.
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