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M/s. Jayaswal Neco Industries Ltd. Versus C.C.E. Raipur

2016 (3) TMI 127 - CESTAT NEW DELHI

Cenvat Credit - capital goods acquired on lease basis from other two entities involved in manufacturing activity is correctly taken or not - Held that:- In the case of Leamak Healthcare Pvt. Ltd. (2010 (6) TMI 424 - CESTAT, AHMEDABAD) the Tribunal held that the Rule 4(3) only further enlarges scope by stating that the credit would not be disallowed even if capital goods are cleared from the financing company. It does not mean that the capital goods must be acquired from a financing company and a .....

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iled by the appellant in respect of capital goods taken on lease. Regarding denial of credit on certain items of structural steel on the grounds that they do not fall under the definition of capital goods, we find that no categorical finding with specific items and quantum of credit attributable to such items have been made. Considering the credit on these items have already been availed by the units who have later leased them out to the appellant, we find no justification for the observation by .....

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o Central Excise Duty. They were availing Cenvat Credit on inputs, inputs services and capital goods. After an audit of their records the Revenue proceeded against the appellant to deny the credit taken on various capital goods acquired by them on lease. The credit was sought to be denied on the ground that in terms of Rule 4 by Cenvat Credit Rules 2004 only when the capital goods are received by the manufacturer on lease from a financial company such credit is admissible. Since the entities fro .....

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cted to by the Department. There is no pending issue on such availment of credit by these two units. They have acquired these capital goods on lease and Rule 4 (3) cannot be read to mean that such lease should be only from finance company. They have relied on the following case laws in their support: 1) Leamak Healthcare Pvt. Ltd. Vs. CCE Goa-2010 (259) ELT 554 (Tri-Amd). 2) Wimplast Ltd. Vs. CCE Daman-2014 (310) ELT 886 (Tri-Amd) 3) CCE Pune Vs. Kalyani Seamless Tubes Ltd.-2004 (176) ELT 899 (T .....

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l for the appellant contended that it is an additional point raised by the original authorities without reference to specific details and the exact amount sought to be denied on the said grounds. He also relied on the Tribunals decision in the case of Mahendra & Mahendra Ltd. Vs. CCE-2005 (190) ELT 301 (LB) to contend that the dutiability as well as admissibility of credit on various steel structures are to be decided at the stage when the iron and steel items are in a movable state and hav .....

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nvat Credit availed by the appellant on various capital goods acquired on lease basis from other two entities involved in manufacturing activity is correctly taken or not. The Revenues contention is that in terms of Rule 4(3) Cenvat Credit in respect of capital goods shall be allowed to a manufacturer if the capital goods are procured on lease, hire purchase or loan agreement from a financing company. Since the persons who leased out these capital goods in the present case are not admittedly, f .....

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