2014 (3) TMI 784

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... whether Lithographic Plates and Thermostar are to be treated as inputs or capital goods. The appellant is engaged in Offset printing process. Revenue has taken a view that both plates which are classified under Chapter 8442 has to be treated as capital goods and not as inputs and therefore the 100% credit taken by the appellant was wrong and on this basis, the credit taken by them was demanding w .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... by the appellant, the product received by them would be classifiable under CH 37.05 only. Even though I agree with the learned Chartered Accountant that because of this decision, the Lithographic Plates received by them would be classified under 37 only but reclassification of inputs or capital goods received cannot be done at the receivers end. Therefore this submission cannot be considered even .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... cannot be considered as capital goods. Admittedly once the Lithographic plate is exposed and developed, it can be used only for printing material which has been exposed and developed on the plate. It cannot be used again for exposure and development of another matter. Needless to say utilization will not be a one time affair. If the matter and the material required is the same, Lithographic plate .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... and during that period clear-cut distinction between capital goods and inputs were not available in the statute. I agree with the stand taken by the learned Chartered Accountant that what was input prior to introduction of definition of capital goods and Modvat credit for capital goods does not become capital goods once the definition of capital goods is given and credit is made available for cap .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... tely. In any case, the cost of the Lithographic plate exposed and developed is recovered from the person for whom offset printing job is undertaken. All these factors would go to show that a Lithographic plate used by the appellant is an input for a particular offset printing job and that may be repetitive but cannot be said that like a capital goods Lithographic plate is used repeatedly. In view .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X