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No bar on admissibility of Cenvat credit either as Inputs or Capital goods at any stage of proceedings

Cenvat Credit - By: - Bimal jain - Dated:- 20-2-2016 Last Replied Date:- 30-12-1899 - We are sharing with you an important judgment of the Hon ble CESTAT, Kolkata in the case of Tata Steel Ltd. Vs. Commissioner of Central Excise, Jamshedpur [2016 (1) TMI 1059 - CESTAT KOLKATA)] on following issues: Issues: Whether rails and other track materials, namely, sleepers, paints and crossings etc. used for movement of raw materials, finished goods, etc. are eligible for Cenvat credit? Whether there is a .....

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t in the case of Jayaswal Neco Ltd. Vs. CCE [2015 (4) TMI 569 - SUPREME COURT] ( Jayaswal Neco Ltd. ) contended that the definition of Inputs allows Cenvat credit on items used in or in relation to the manufacture of final product, whether directly or indirectly or whether contained in the final product or not; and since the Impugned items were used in their works for bringing raw materials and dispatching of finished excisable goods, accordingly Cenvat Credit is eligible. However, the Departmen .....

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4, respectively. On adjudication, the total demand of ₹ 1,08,51,815/- was confirmed with interest and equal amount of penalty. Being aggrieved, the Appellant preferred an appeal before the Hon ble CESTAT, Kolkata, submitting that Cenvat credit on the Impugned items is admissible as Inputs or alternatively, as Capital goods. The Department argued that the Appellant has taken a diametrically opposite stand, pleading that the Impugned items are Capital goods and not Inputs for the purpose of .....

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ck materials under the Cenvat Credit Rules, 2004 ( the new Credit Rules ), the Department is precluded from challenging the applicability of the said judgment to the present case; Since the Department has accepted the admissibility of Cenvat credit on the Impugned items involving the same Assessee for subsequent period under the new Credit Rules, therefore, adopting the principle of certainty & consistency in tax matters, the Assessee is eligible to Cenvat credit on the Impugned items; In Ki .....

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the Hon ble Tribunal allowed the appeal filed by the Appellant. Our Comments: Presently, in order to avail Cenvat credit on any Inputs, it should qualify the definition of Inputs as provided under Rule 2(k) of the new Credit Rules. Prior to April 1, 2011, the definition of Inputs read as under: input means- i. all goods, except light diesel oil, high speed diesel oil and motor spirit, commonly known as petrol, used in or in relation to the manufacture of final products whether directly or indir .....

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definition of Input has been revised substantially wherein the new phrase All goods used in the factory by the manufacturer is used in the definition of Inputs as against the phrase used in or in relation to the manufacture of final products whether directly or indirectly and whether contained in the final product or not existing prior to April 1, 2011. But, it would not be out of place here to note that by virtue of Clause (F) in Rule 2(k) of the new Credit Rules, it is provided that those good .....

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