Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2018 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (7) TMI 165 - AT - Central ExciseCENVAT Credit - scope of 'Factory' - capital goods - Whether the compressor used at the gas well to pump gas into tankers which is about 30 K.M. away from the manufacturer can also be considered as a part of the factory premises of the appellant? - Held that:- The definition “Capital goods” under Rule 2(a) of CCR 2004 specifically requires the goods to be used in the factory of the manufacturer of the final products subject to some exceptions. The current case does not fall in those exceptions. Therefore, the capital goods in this case i.e. compressor must be used in the factory of the manufacturer of the final products if CENVAT credit must be allowed. The definition of “Factory” has been given in Central Excise Act and this clearly does not cover the gas well where the compressor has been installed - It is true that the goods are finally required for the manufacture and so are many other raw materials sourced from various places without which the manufacture cannot take place. All these places from where raw materials are sourced, cannot be treated as part of the factory of the manufacturer. There is nothing on record to show that the well is part of the registered premises of the factory of the manufacturer - CENVAT credit not admissible - demand upheld. Penalty - Held that:- Appellant has enough reason to suspect that they were entitled to the credit and hence any malafide intent cannot be attributed - penalty not warranted. Appeal allowed in part.
|