TMI Blog2011 (4) TMI 1098X X X X Extracts X X X X X X X X Extracts X X X X ..... CESTAT had misconstrued Rule 2 of CENVAT Rules and the Explanation thereof; and, in the light of the findings of the original authority that the goods in question were used for repairs of machinery, they did not fall within the ambit of “capital goods” under Rule 2 of the CENVAT Rules and, as such, no CENVAT credit could be claimed thereupon – Held that:- “capital goods” would not only include goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... J. Shri A. Rajasekhar Reddy, SSC, for the Appellant. [Judgment per : Ramesh Ranganathan, J.]. This appeal, under Section 35G of the Central Excise Act, 1944, is preferred against Final Order No. 1314 of 2007 dated 16-11-2007 of the Customs, Excise and Service Tax Appellate Tribunal, Bangalore (CESTAT) which arose out of the Order-in-Appeal No. 66 of 2005, dated 24-3-2005 passed by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 02 (140) E.L.T. 372 (P H) and the judgment of the Tribunal in Jaypee Rwea Plant v. CCE, Raipur - 2003 (57) RLT 739 (LB) = 2003 (159) E.L.T. 553 (Tri. - LB), held that the Revenue s appeals were liable to be rejected. The CESTAT noted that the Commissioner (Appeals) had gone into great detail, and had applied the provisions of the Explanation 2 to Rule 2 of the CENVAT Credit Rules and the Board s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd sub-heading No. 6801.10 of the First Schedule to the Tariff Act; (ii) components, spares and accessories of the goods specified at (i) above; (iii) moulds and dies; used in the factory of the manufacturer of the final products, but does not include any equipment or appliance used in an office. 4. It is evident therefrom that capital goods would not only include goods falling un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only goods mentioned in clauses (i) to (iii) of Rule 2(b), and which are used in the manufacturer s factory, which fall within the ambit of capital goods . The goods in question are, admittedly, used in the repairs of capital goods in the factory of the manufacturer and, as such, fall within the ambit of Section 2(b)(ii) of the CENVAT Credit Rules. The order of the CESTAT, in rejecting the conte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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