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2016 (2) TMI 287 - AT - Central ExciseIneligible CENVAT Credit availed on capital goods - various machinery and items purchased and used in setting up of thermal power plant in their factory.- Held that:- The appellants purchased capital goods, paid for the same and received under due documents in their premises. The supplier had another set of contracts for designing, erection, commissioning and civil/structural works. On all these service contracts, the contractor has paid service tax as applicable on full value. The question of examining the valuation of service contracts for the purpose of determining the eligibility of CENVAT Credit on capital goods for the appellant does not arise. There is no composite contract in the construction of thermal power plant. This has no capital goods which were purchased by the appellant were used by the contractor in the construction of thermal power plant has no consequence to the appellants eligibility to the CENVAT Credit. As discussed earlier the impugned order proceeded on propositions not even contemplated in the demand. On Careful analysis of the facts relevant to the case, we find that the impugned order is not legally sustainable and accordingly set aside the same - Decided in favour of assessee.
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