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2018 (7) TMI 1707 - AT - Central ExciseCENVAT Credit - inputs/capital goods - MS Bars, MS Channels, MS Joists & MS beams etc. - inorganic chemicals compound stabilizers of rubber - whether MS Bars, MS Channels, MS Joists & MS beams etc. and inorganic chemicals compound stabilizers of rubber as used by the appellant for erecting a foundation as a base for its blending machine to manufacture the product called Deoxidized Soya Bean can be called as capital goods / Inputs so as to entitle appellant to avail credit there upon? Held that:- Apparently, the articles on which the credit has been availed do not fall under any of the Chapters as mentioned in clause (i) of capital goods definition. Admittedly and apparently they fall under Chapter heading 72, and under Chapter heading 2824 & 3812 of Central Excise Tariff Act respectively, which cannot be categorized as capital goods - However, Clause (iii) and (vii) thereof includes i.e. anything which may be a component spare and accessory of the goods as specified in the Chapters under clause (i) of the said definition they can also be rightly classify as the capital goods. Whether the inputs in question can be the components spare or accessory or the fixture in clause (iv) of the definition of capital goods? - Held that:- Inputs means anything essentially used in manufacturing process - When Chartered Engineer Certificate is there to explain the articles in question to be the integral part of manufacture, the same be relied to extend benefit of Cenvat Credit - This particular certification is sufficient to hold that the MS Bars, MS Channels, MS Joists & MS beams etc. are very much the integral component/spare part of the machine meant to yield output hence can well be classified as capital goods and the inputs as mentioned in the above definitions. Credit allowed - appeal allowed - decided in favor of appellant.
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