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2016 (7) TMI 797 - AT - Central ExciseDenail of Cenvat Credit - whether bought out items are inputs - Held that:- Since the boiler is the final product of the manufacturer, every component within it and every input that goes into the component manufactured in the factory would an input in so far as CENVAT Credit Rules, 2004 is concerned. It is certainly not a tenable claim that Revenue can distinguish between an input of an input and an input itself when there is no dispute that the components manufactured from inputs and the components that are inputs have gone into the final products; nor can Revenue presume to enter the commercial arena and dictate the manufacturing policy of an industry. In the context of the decision of the Tribunal in the appellant's own case cited supra which we respectfully follow, we find that the 'bought-out' items are also inputs for the purpose of taking credit in accordance with the definition in rule 2(k)(i) as it stood then. The appellant is entitled to take CENVAT credit on the bought-out parts used in the installation of boilers. We notice that some of the boilers have been erected at the Special Economic Zone at Jamnagar while others have been exported from India. Considering the decision of the Tribunal in re Flat Products Equipments (I) Ltd (supra) the demand of credit cannot survive. Credit allowed - Decided against the revenue.
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