Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2017 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (6) TMI 156 - AT - Central ExciseCENVAT credit - Natural Air - input or capital goods - whether the imported Molecular Sieve and activated Alumina would be treated as capital goods as held by the Adjudicating Authority or input as claimed by the Revenue? - Held that: - Molecular Sieve is a chemical item and is used for purification of Air-Plant. It is used for absorbing Carbon-Di-Oxide and water (moisture) from the Air being processed in the manufacture of Oxygen. There are several decisions of judicial authorities where the various chemicals were treated as inputs under the Modvat/Cenvat Scheme. The Tribunal in the case of Commissioner of Central Excise, Indore v. Flex Chemicals Pvt.Ltd.[2001 (4) TMI 720 - CEGAT, NEW DELHI] observed that the Modvat Credit on inputs cannot be denied on the ground that the assessee has claimed as capital goods - the Molecular Sieve is an input as held by the Adjudicating Authority. But the Cenvat Credit cannot be denied as it was claimed as capital goods. Credit allowed - appeal dismissed - decided against Revenue.
|