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2018 (4) TMI 285 - AT - Central ExciseCENVAT credit - imported Rectifiers - Department was of the view that the process carried out by the appellant within the factory do not bring about any new product and hence the Rectifiers are to be considered as inputs cleared as such - Rule 3(5) of CCR - Held that: - these tests as well as programming carried out within the factory are in the nature of acceptance testing i.e. to mean that the tests are required to ensure that the goods which are being cleared in the spare parts market satisfied the conditions which are prevailed in India. Without carrying out these tests, the imported Rectifiers are not considered fit for use in the Indian conditions. As seen from the technical write up, of various processes carried out within the factory, we are of the view that the imported Rectifiers cannot be considered as cleared N as such'. These goods are cleared only after carrying out various tests which by themselves may not amount to manufacture but are necessary to complete the manufacturing process of the imported Rectifiers. The processes carried out are in the nature of finishing process which can be considered as ancillary to the manufacture of a finished product - there is no justification for demand of such amount under Rule 3 (5). Appeal allowed - decided in favor of appellant.
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