Home Case Index All Cases Central Excise Central Excise + HC Central Excise - 2009 (2) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2009 (2) TMI 195 - HC - Central ExciseCenvat Credit on Capital Goods - Carding and combing machines - used for manufacturing sliver and combed/carded cotton - scope of rule 2(a) of cenvat credit rules, 2004 - The final product viz., cotton yarn was cleared on payment of duty. Thus carded/combed cotton/sliver came into existence at an intermediate stage. The Tribunal and the other authorities rightly held that the goods in question were not marketable and relying on the circular No. 665/56/2002-CX., dated 25-9-2002 held that "Cenvat credit should not be denied on the capital goods used in manufacture of intermediate product exempt from payment of duty which are used captively in the manufacture of finished goods chargeable to duty" held that Modvat credit of duty paid on the capital goods cannot be denied.
|