Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2024 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (3) TMI 911 - AT - Central ExciseCENVAT Credit - denial of credit on the ground that the appellant has incorrectly considered the electrodes as “inputs” and availed full credit whereas they are capital goods, in respect of which only 50% of CENVAT Credit is available in the year of receipt as per the CENVAT Credit Rules, 2004 - HELD THAT:- Circular No. B22/51/86-TRU dated 21.10.1986 clarified the position that It is only for the purposes of Notes 1 to 4, Section XVI that the word 'machine' (used in Notes) refers to any machine, machinery, plant, equipment, apparatus or appliance mentioned in the heading of Chapter 84 or 85. Otherwise, the whole phrase "machine, machinery, plant, equipment, apparatus, etc." would have to be used wherever the word "machine" is used in the Notes. As carbon electrode is essential for manufacture of aluminum, it should be eligible for Modvat credit, as it would satisfy the criterion of input. Also, the issue whether electrodes can be treated as ‘input’ for availment of CENVAT Credit or ‘capital goods’ came before the Tribunal in the case of THE COMMISSIONER OF GST & CENTRAL EXCISE VERSUS M/S. CHEMFAB ALKALIES LTD. [2023 (7) TMI 947 - CESTAT CHENNAI] wherein the Tribunal observed The Tribunal in the case of COLLECTOR OF C. EX. VERSUS METTUR CHEMICALS & INDUSTRIALS [1990 (12) TMI 243 - CEGAT, MADRAS] held that cathodes used in the electrolytic process being incidentally consumed in the manufacture of caustic soda is an ‘input’ as defined under erstwhile Rule 57A of Central Excise Rules, 1944 and eligible for modvat credit. As the issue is no longer res integra in view of the clarifications issued by the C.B.E.C. by way of Circulars from time to time and the decision in the case of M/s. Chemfab Alkalies Limited, it is held that on all the items which have been used by the appellant in the process of manufacture of their final product, the appellant is entitled to avail CENVAT Credit, as inputs. There are no merit in the impugned orders and accordingly, the same are set aside - appeals filed by the appellant are allowed.
|