Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2015 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (10) TMI 1679 - AT - Central ExciseDenial of CENVAT Credit - Bar of limitation - Held that:- Materials were used for fabrication of machines namely, Winder Frame, Air Handling System, Cooling System, Dryer Structure etc. It is contended that weight, size and nature of the machines was such that its fabrication/ fixing to structures was essential with nuts and bolts because the attachment is not permanent and what is attached can be easily detached It is categorically stated that these items were used to install the machines at their factory. The appellant claimed that these items are accessories used in the plants and machineries. In terms of Clause (iii) of Rule 2(a) of Cenvat Credit Rules, 2004, “Capital goods” covers components, spares, accessories used in the goods specified in Clause (i) and Clause (ii) irrespective of any heading. The department failed to produce any material that these items were used as building materials. But, the appellant had given detailed use of these items in fabrication of machines in reply to show cause notice, which was not disputed by the adjudicating authority. Demand is barred by limitation. The appellant availed credit on these items and declared in their ER-1 returns. These items were used in various machineries. This fact was not refuted by the department. No material was available that the appellants suppressed the fact with intent to evade payment of duty. - impugned order can not be sustained on merits as well as on limitation. - Decided in favour of assessee.
|