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2016 (12) TMI 645 - CESTAT HYDERABADDisallowance of credit on capital goods - Conveyor Belt - Circular Bottom Plate - Rubber goods - Steel wire ropes - Wire woven Mesh - during the period February, 2010 to March, 2010 - Held that: - the definition of capital goods includes spare/ components/accessories of capital goods specified under chapter 82, 84,85 or 90 of Central Excise Tariff Act, 1985 - it is revealed that the subject goods are spares parts of capital goods which are used in the manufacturing activity by the appellant. Further, it is also seen that for earlier period, vide Order-in-Original dated 23-07-2010 the adjudicating authority has allowed credit on all these subject items and dropped the proceedings. Although the department filed appeal against such order before the Commissioner(Appeals), the same was dismissed vide Order-in-Appeal dated 07-03-2011 - For the reasons that the subject goods fall within the definition of capital goods being spare/ components /accessories of capital goods and also taking note of the fact that the appellant has been allowed credit for the earlier periods, I hold that the demand is unsustainable. The impugned order is set aside - appeal allowed - decided in favor of assessee.
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