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2018 (12) TMI 845 - AT - Central ExciseCENVAT/MODVAT Credit - inputs/capital goods - bought-out components - Department took the view that as the bought-out components are not used or intended for use in the manufacture but merely exported in the same form in which they were procured, the appellants would not be entitled to avail credit on the same. Held that:- In view of the changed definitions and provisions of law during the period of dispute in these appeals, appellant are very much eligible to avail CENVAT credit of duty paid in respect of the input / goods which have been bought out by the appellants and have been removed / cleared as such from their factory in various consignments for export under bond for eventual purposes of setting up of sugar plant in Indonesia. Hon‘ble Supreme Court‘s decisions in the appellant‘s own case for earlier period in M/S. KCP LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, CHENNAI [2013 (9) TMI 98 - SUPREME COURT] need not be applied to the subsequent periods covered by these 12 appeals, not only on account of aforesaid change of definition of inputs/capital goods as also on account of subsequent decisions of the Hon‘ble Supreme Court. Hon‘ble Supreme Court in their subsequent judgment in Thermax Babcock & Wilcox Ltd. [2015 (5) TMI 631 - SUPREME COURT], has been followed by the Tribunal in Thermax Ltd. Vs. Commissioner of Central Excise, Pune [2016 (7) TMI 797 - CESTAT MUMBAI] wherein it has been held that bought out items used in erection of boilers at customer‘s site are inputs and cannot be distinguished from inputs used in manufacture of components within the factory, as both have gone into manufacture of final product. CENVAT credit availed on the impugned bought out goods / inputs, with interest, and also imposing penalties under various provisions of law, cannot be sustained and require to be set aside - appeal allowed - decided in favor of appellant.
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