TMI Blog2015 (10) TMI 2397X X X X Extracts X X X X X X X X Extracts X X X X ..... remises for completion of manufacturing process due to shortage of space in the factory, and the finishing work of stitching and packing is being done by the appellant without hiring or engaging another person for doing the said work. That as no job worker is involved the provisions of Rule (5) of Cenvat Credit Rules do not apply. - The fact that machine was used in a premises near to the factory is not disputed. So also it was used for connected process of manufacture. The process in these premises was carried out by the appellant themselves. The machine was used by appellants for the production of final products. Thus the activity of appellants in using the machine (capital goods) can be said to be part of its manufacturing activities of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d credit of 50% in the same financial year and 50% in the next financial year. It is the case of appellant that due to shortage of space in factory, another premises near the factory was taken on rent. This premises was used for stitching of HDPE bags out of semi finished material received from the factory. After stitching of bags, the bundle of HDPE bags are pressed in the Hydraulic bale press machine to reduce the size of the bundle. The goods are returned to the factory for clearance. The movement of goods is covered by challan and the same is returned within 180 days. The learned Counsel for the appellant submitted that the machine was used in a premises near to the factory only because of shortage of space in the factory. The movement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... envat Credit Rules do not apply. 7. The machine was removed from the factory to a nearby premises for finishing of the manufacturing process. Department does not have a case, that the movement of machine or that of semi finished goods or finished goods were suppressed. According to the appellant they described it as job work as there was no other procedure prescribed. But that everything was done under challans. I do find some force in these arguments. The fact that machine was used in a premises near to the factory is not disputed. So also it was used for connected process of manufacture. The process in these premises was carried out by the appellant themselves. The machine was used by appellants for the production of final products. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erefore, the activity of the respondent in the usage of the capital goods can be said to be part of its manufacturing activities of final product in its registered factory. It is also not the case of the appellant that by usage of the capital goods in the Mother Roll Plant, the same was in any way alienated to any one, other than the respondent factory. 8. In Pooja Forge Ltd. Vs. CCE, Faridabad-2006 (196) ELT 18 (Tri.) it is held that as the capital goods are moved only between the appellants own units, and that too for use in the manufacture of the same final products, the credit cannot be denied. The facts of the instant case being similar to the decisions cited upon the ratio laid down in the above decisions are applicable to the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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