Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2016 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (12) TMI 205 - CESTAT CHANDIGARHReversal of CENVAT credit - glass bottles and crates - Rule 3(5) of the Cenvat Credit Rules, 2004 - manufacture of aerated water and Beverages syrup falling under Chapter 21 & 22 respectively of the Central Excise Takiff Act, 1985 - Held that: - It is an admitted fact on record that used glass bottles and crates returned by the customers to the Respondent were removed to its sister unit under proper challans. Since, no new bottles / plastic crates received in the factory of the Respondent were removed to its sister concern as such the provisions of Rules 3(5) of the Cenvat Credit Rules, 2004 will not applicable to such situation, inasmuch as the said provisions mandate payment of amount equal to cenvat credit, in the eventuality, when the inputs or capital goods are removed as such from the factory. I also find that based on the available records, the Commissioner (Appeals) has held that used bottles were removed from the factory of the Respondent, for which no reversal of Cenvat Credit is called for. Further, the Commissioner (Appeals) has also held that even if bottles and crates are capable for repeated use, but the same cannot be considered as capital goods, since the definition does not cover packing material within its purview for consideration as capital goods. Appeal dismissed - decided against appellant-Revenue.
|