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2018 (1) TMI 479 - AT - Central ExciseCENVAT credit - capital goods - Furnace oil - Petroleum Coke - Plastic bags/sheets - Cotton chedda - LPG gas cylinder - Synthetic lubricants/grease - Held that: - The LPG gas cylinder is not a capital goods as the gas cylinder is only carrying LPG gas on which central excise duty is paid by the bottlers. In my view, the said LPG gas is being a fuel, credit cannot be allowed, as the provisions of Rule 2(k) of the Cenvat Credit Rules, 2004 are very clear - credit denied. CENVAT credit - furnace oil - petroleum coke - plastic bags/sheets - cotton chedda - synthetic lubricants/grease - Held that: - these items can be considered as inputs - It is undisputed that the said items are used in factory premises of the appellant and central excise duty has been discharged on these items by the supplier/manufacturer of the said items. However, the appellant needs to reverse the cenvat credit attributable to the quantum of these inputs used for manufacturing fabrics which are cleared by them availing the benefit of exemption N/N. 30/2004-CE - matter is remitted back to the adjudicating authority to calculate the amount which needs to be reversed by the appellant out of the cenvat credit availed by them and the appellant shall discharge the said proportionate amount as determined by the lower authorities along with interest. Time limitation - Held that: - he said question need not be answered at this juncture as the availment of cenvat credit on the capital goods was being contested by the Revenue, appellant shifted stand claiming items as an input, which itself would mean that the appellant was aware that the inputs on which credit was availed would not fall under the category of capital goods - the argument regarding limitation is rejected. Penalty - Held that: - As the issue involved in this case regarding interpretation on the eligibility to avail cenvat credit as inputs or capital goods, no penalty is warranted against the appellant. Appeal allowed in part.
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