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2019 (7) TMI 255 - AT - Central ExciseCENVAT Credit - inputs - MS plates which has been used in repair or maintenance of Heavy Earth Moving Machinery (HEMMs) used in the coal mines - denial on account of nexus with output - HELD THAT:- There is no dispute that the subject goods ‘MS plates’ has been used for repair or maintenance of HEMMs used in the coal mines of the appellant. The definition of term ‘input’ as defined in the CCR, 2004, includes all goods used in the factory of production unless specifically excluded therefrom. Neither of the exclusion clauses provided in the definition of term ‘input’ under Rule 2(k) is attracted in the instant case. In the instant case, the subject inputs have not been used for construction of any building or structure/foundation for support of capital goods, but for repair and maintenance of coal handling plant and HEMM’s. The usage of subject goods is very integral to the mining activity itself without which mining cannot be done - the use of goods in question in the repair and maintenance of coal handling plant and HEMM’s is indispensible, in absence of which mining activity cannot be undertaken. Therefore, usage of subject goods bears a direct nexus with the mining activity and by no stretch of imagination it can be said that they have no relation with production of coal, which is the final product. The appellant is legally entitled to avail the benefit of credit on goods used in the repair and maintenance of plant & machinery which is used in the coal production process - Credit allowed - appeal allowed - decided in favor of appellant.
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