Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2018 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (12) TMI 724 - AT - Central ExciseCENVAT Credit - inputs - fireworks purchased from their other units - Rule 16(1) of Central Excise Rules 2002 - Held that:- The definition of input show that not only the inputs that is used for manufacture of final products but also those goods cleared whose value is included in such final product will come within the definition of inputs. Further, all goods used in the factory by the manufacturer of the final product would come within the definition. This means any goods used by manufacturer within the factory is input. The words used are ‘by the manufacturer’ and not ‘for the manufacture’. The authorities below have erred in interpreting that in order to qualify as inputs, the goods have to be used for manufacture. Rule 16 speaks about situation wherein duty paid goods are brought into factory for refine, reconditioned or for any other reason - In the present case, the goods are not brought to the factory but they have been bought by the manufacturer and the value of such goods have been included in the assessable value of the final product. The situation does not give raise to invoke Rule 16(1) at all. The demand cannot sustain and requires to be set aside - appeal allowed - decided in favor of appellant.
|