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2020 (3) TMI 836 - AT - Central ExciseCENVAT credit - Capital Goods - allegation that plant erected at site are embedded to the earth and as such, such plant facilities cannot be considered as excisable goods for the purpose of availment of CENVAT credit on such disputed items - requirement to avail 50% of CENVAT credit in respect of capital goods during the year of receipt - allegation that appellant had availed 100% CENVAT credit on the capital goods in the financial year of receipt. HELD THAT:- On receipt of the disputed goods, the appellant had availed CENVAT credit under the head ‘inputs’. Those goods received in the factory were subsequently used for assembly/manufacture of capital goods, installed within the factory of manufacture of final products. The period under dispute involved in this case is from September 2006 to December 2008 - all goods excepting the excluded items/goods itemised therein, were considered as inputs for the purpose of availment of CENVAT credit. Further, the explanation appended to the said definition clearly specifies that the goods used for manufacture of capital goods, which are further used in the factory of the manufacturer should also be considered as inputs. The documents/records submitted by the appellant clearly demonstrate that the goods in question were used for erection/manufacture of various capital goods namely clinkerisation plant, power plant etc., installed within the factory of manufacture of cement. Thus, as per the definition of inputs contained in Rule 2(k) ibid, the appellant should be eligible for the CENVAT benefit on the disputed goods used for manufacture of capital goods. The denial of CENVAT benefit on the disputed goods should not stand for judicial scrutiny, as against rules framed in the CENVAT Statute - appeal allowed - decided in favor of appellant.
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