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2015 (11) TMI 553 - CESTAT NEW DELHIDenial of CENVAT Credit - whether, the locomotive should be considered as an eligible item for the purpose of taking cenvat credit - Held that:- As per the definition, goods falling under chapter 82, 84, 85, 90 and the components, spares and accessories of the goods of the said chapters are considered as capital goods, on which the assessee is permitted to take cenvat credit. Since locomotive is classified under chapter 86, and the same is not fitted to any machine(s) of the above specified chapters, as component, spares or accessories, in my opinion, locomotive is not confirming to the definition of capital goods. Thus, cenvat credit on locomotive as capital will not be available to the appellant. - disputed goods are also used for movement finished goods upto the destination point for sale. Thus, the activities carried out in the factory of the appellant with the help of locomotive, has a nexus with the manufacturing process, and as such, as per the clear and unambiguous definition of input, the locomotive cannot be denied the cenvat benefit. The case of the appellant gets support from the decision of larger bench of this Tribunal in the case of Banco Products (India) Ltd, wherein it has been held that Plastic crates used for transporting/ storing of goods in the factory will be considered as input for the purpose of Modvat credit, because in absence of proper storage and efficient movement of gods under the cover of plastic crates, the manufacturing activity will be affected. In view of the principles decided by the Larger Bench of the Tribunal, use of locomotive by the appellant for the intended purpose within the factory, will qualify for availment of cenvat credit under the head input. - Decided in favour of assessee.
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