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2018 (7) TMI 1940 - CESTAT KOLKATACENVAT Credit - capital goods - denial on the ground that the capital goods in question, being oxygen plant, were leased to the appellant by Praxair India Ltd. - contravention of Rule 4(3) of the Cenvat Credit Rules, 2002 - HELD THAT:- The appellant acquired the possession of the equipments under lease agreement and that operation and maintenance of the said plant by Praxair was on payment of agreed lease rent and operation and maintenance charges by the appellant to it are clear. The documents on record also evidence that the oxygen produced at the said plant was solely and exclusively captively used in the factory by the appellant for manufacture of dutiable final products. The issue is no longer res integra. It has been held that ownership is irrelevant for the purpose of availing CENVAT Credit under the Cenvat Credit Rules. Hon’ble Bombay High Court in the case of CCE Vs. Modernova Plastyles Pvt. Ltd.,[2015 (6) TMI 154 - BOMBAY HIGH COURT] held that for taking credit of duty paid on capital goods (moulds) it would not be necessary that capital goods shall be owned by the assessee or those shall be acquired by finance from financing agency and denial of credit based on such ground is unsustainable. The appellant had correctly availed cenvat credit in respect of the duty paid on the capital goods involved and their entitlement to such CENVAT Credit cannot be denied - Appeal allowed - decided in favor of appellant.
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