Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2021 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (8) TMI 644 - AT - Central ExciseCENVAT Credit - inputs/capital goods - Welding Electrode - Railway Line material - credit denied on the ground that some of the input/ capital goods were not used in or in relation to manufacture of final product and as regard the railway line material, since these were used and situated outside the factory premises cenvat credit was disallowed - HELD THAT:- All the goods have been used in or in relation to manufacture of the final product directly or indirectly. MS Gratings were used as an essential accessory for supporting and holding and for approaching or reaching out plants/ processing units of refinery in which raw material is processed for manufacture of petroleum products. Looking to the nature of the industry, it is a technological necessity without which the processing unit cannot perform. Welding material - HELD THAT:- The welding material is used for repairs and maintenance of the plants and machinery, the repair and maintenance activities are essential for smooth manufacturing operations without which manufacturing activity is not feasible, therefore, the cenvat credit is clearly admissible. Railway line material - HELD THAT:- Railway line material is used to move inputs/ raw material and manufactured goods within the factory premises. The movement of goods through railway track is directly connected to the manufacture of final product, therefore, the credit cannot be denied on these items. On every item, this Tribunal has considered the admissibility of the cenvat credit and in various judgements, it was held that the credit is admissible on the goods in question. Therefore, following the precedent decisions of this Tribunal and various courts, the appellant is entitled for the cenvat credit on the said goods - credit allowed - appeal allowed - decided in favor of appellant.
|