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2016 (12) TMI 909 - CESTAT MUMBAIManufacture - bought-out items like tubings, FRP Rods, Adhesive, Mastic tapes etc. are cleared as insulating fittings under sub-heading 8547.00 - period involved in the present case is July 2003 to March 2004 - whether the activity of bought out items cleared as cable jointing kits is a manufactured goods, and if not whether the Cenvat Credit on the bought out items is admissible for non manufacturing activity? - Held that: - On the plain reading of Rule 16 of the Central Excise Rules, it can be seen that on the bought-out items credit can be availed and if the activity is not amount to manufacture on the clearance of the same duty is required to be paid equal to the cenvat credit availed on such bought out items. In view of the above Rule even though if it is admitted that the activity of the appellants is not amount to manufacture, as regard the clearance of cable jointing kits the cenvat credit availed by the appellants is not incorrect - In view of the provisions of Rule 16 of the Rule, in our considered view the appellant’s act of availing the Cenvat Credit in respect of bought out items i.e. Cable Jointing Kits is clearly admissible. The impugned order is set aside - appeal allowed - decided in favor of appellant.
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