Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2018 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (8) TMI 1669 - AT - Central ExciseMODVAT/CENVAT credit - bought out items (components, assemblies) - export of the items under bond as inputs / capital goods cleared ‘as such’ - Department was of the view that the bought out items such as components and assemblies procured from other manufacturers were not used for manufacture or even intended for use in manufacture within the factory of appellant and therefore appellants are not eligible to avail credit on bought out items which were merely exported as such. Whether appellants are eligible for MODVAT / CENVAT credit on the bought out items which were later exported as such being parts / components / assemblies of Sugar Plant Machinery to be installed at Vietnam? Held that:- Indubitably, the appellants have exported the entire Sugar Plant to Vietnam with core machineries manufactured by the appellant along with other bought out duty paid items brought into the factory; thereafter both categories of goods cleared and agglomerated together for the purpose of export. There is also no allegation that the combined value of both manufactured as well as bought out items have not been included in the export price declared by the appellants. There also appears to be no dispute that the assemblage of goods at the point of export was an omnium gatherum gathered of both self-manufactured and bought out items, all duty paid by the respective manufacturers, which was intended to constitute a complete sugar plant in Vietnam. The show cause notice dated 29.3.1996 at para 2.0, also narrates that the disputed bought out goods were “used only for receipt and export, as such”. The taxes cannot be exported; that it is not the intention or policy of the Government otherwise; that in such cases where the manufacturer procures some of the parts from other manufacturers and removes them along with the remaining self-manufactured goods, the clearances for all practical purposes has to be treated as effected from factory gate. The undeniable fact is that the earlier order of this Bench, in the appellant’s own case [2003 (5) TMI 166 - CEGAT, CHENNAI] had concluded, “that bought out items both inputs and capital goods in question cannot be considered as eligible capital goods for availing MODVAT credit …..”. The remand directions given by the Tribunal in that order dated 2.5.2003 was only for ‘computing and confirming the amount of irregularly availed MODVAT credit …. etc.” based on the above conclusion reached by them. This decision has been upheld by the Hon’ble Supreme Court in [2013 (9) TMI 98 - SUPREME COURT]. As a lower court, here it is definitely required to follow the precedent on an issue, when it is already decided by Apex Court, as it has been in this case. Appeal dismissed - decided against assessee.
|