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2018 (5) TMI 392 - CESTAT CHENNAICENVAT credit - According to department, as per definition of 'first stage dealer' given in CCR 2004, the dealer should purchase the goods directly from the manufacturer and that the appellants are not eligible for the credit availed on the Aluminium scrap which were resold to them - Held that: - the appellants are not the manufacturer of Aluminium scrap and they have only imported the scrap for manufacture of Aluminium ingots. They cleared certain quantity of scrap "as such" under Rule 3 (5) of CCR 2004 to a first stage dealer who availed credit on the same and thereafter resold to the appellant who availed credit on the said goods being inputs. According to department, the first stage dealer cannot avail credit on the aluminium scrap as the goods having removed as such. We do not find any sum or substance in such a proposition - For the purpose of Rule 2, the dealer is one who purchases “goods” from the manufacturer, and is not limited to somebody who only purchases goods “manufactured” by the manufacturer. Appeal allowed - decided in favor of appellant.
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