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ELIGIBLE INPUTS FOR TAKING CENVAT CREDIT AS DECLARED BY TRIBUNALS/HIGH COURTS

Cenvat Credit - By: - Mr. M. GOVINDARAJAN - Dated:- 8-9-2016 Last Replied Date:- 8-9-2016 - Pre-requisite The definition of input is very wide as held in Commissioner of Customs (Exports), Chennai V. Prashray Overseas Private Limited - 2016 (5) TMI 1106 - MADRAS HIGH COURT and includes even packing material, fuel, electricity etc., Stipulation that CENVAT credit ought not to have been claimed, has in built stipulation that inputs had suffered some duty. If inputs had not suffered any duty then q .....

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VAT credit. The appellant has no concern whether the supplier has manufactured the inputs or not. The Adjudicating Authority cannot proceed against the appellant to deny CENVAT credit in such a case. Beneficial legislation In Srinathji Ispat Limited V. Commissioner of Central Excise & Service Tax, Ghaziabad - 2015 (10) TMI 2072 - CESTAT NEW DELHI the Tribunal held that CENVAT scheme, being beneficial legislation, it should be given as wider meaning as possible. The inputs means anything esse .....

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vailed credit of MS items (HR plates/sheets) used for repair and maintenance of storage tanks. The department was of the view that the impugned goods are not covered by the definition of input as they were used in the installation of huge tank embedded to earth and become civil structures. The original authority disallowed the credit and ordered recovery of the same along with interest and imposed penalty. The Tribunal held that the storage tanks are used for storing petroleum products. It is co .....

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and these tanks have to be periodically required and maintained to prevent seepage. Hence maintenance and repair of storage tanks can be said to be an integral part of manufacturing process carried out by the appellant. Common inputs In Bhairav Synthetics Private Limited V. Commissioner of Central Excise, Thane - I - 2015 (12) TMI 1051 - CESTAT MUMBAI the common inputs were used in manufacture of dutiable and exempted products. No separate input account was maintained. The appellant availed 20% .....

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- 2016 (7) TMI 797 - CESTAT MUMBAI the CENVAT credit on bought out items claimed to have been used in the erection of boilers at the site of the purchasers. Since it is physically impossible to assemble and transport boilers in complete form, the pressure parts of boilers manufactured and cleared from factory and other parts procured from outside delivered at erection site for complete installation of boilers. In case of domestic clearance bought out parts directly delivered at site and credit .....

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put as per Rules. Bought out items are inputs and cannot be distinguished from inputs used in manufacture of components within factory, as both have gone into manufacture of final product. The assessee is entitled to take CENVAT credit on bought out parts used in installation of boilers. Inputs for capital goods In Ganga Kishan Sahkari Chinni Mills Limited V. Commissioner of Central Excise, Meerut - I - 2015 (10) TMI 2526 - CESTAT ALLAHABAD the appellant was denied CENVAT credit on certain goods .....

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for the CENVAT credit. The Tribunal held that the inputs used in repair and maintenance of capital goods which further used in manufacture of excisable finished goods. No final product can be manufactured without repair and maintenance and upkeep of capital goods, inputs required for upkeep and maintenance, eligible for CENVAT credit. Absence of GRN In Veer-O-Metals Private Limited V. Commissioner of Central Excise, Bangalore - III - 2016 (2) TMI 867 - CESTAT BANGALORE the credit availed by the .....

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the seller of inputs, as reflected in the invoice. The appellants have recorded the invoices, inputs, along with the available CENVAT credit in their statutory records. In the absence of inputs in question the corresponding final products could not be manufactured by them. The non availability of the said documents which are not even the prescribed documents in terms of the Rules and the purpose of which is only to show the receipt of the materials at the factory gate, cannot be held to be conc .....

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ment of duty from coal mines. The Department denied the credit attributable to the invisible losses that occur due to washing of the coal to make it for use. There is no allegation in any proceedings that certain quantity of input has been diverted or contained in some other product that arose during the processing of coal. The admitted fact is that the 3% loss is solely attributable to washing. Considering the above factual position, the Tribunal found no ground to reverse the CENVAT credit whe .....

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ld to be non manufacture. The Tribunal held that the plain reading of Rule 16 provides that CENVAT credit is allowed on the duty paid material treating it as inputs for the purpose of various processes and after processing if the activity is not amount to manufacture, the assessee is required to clear such processed goods on payment of duty which is equal to CENVAT credit and if the activity amounts to manufacture then excise duty is required to be paid on transaction value. As per this provisio .....

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y line, the assessee cannot be asked to reverse the credit. Lubricants In Northern Coalfields Limited V. Commissioner of Central Excise & Service Tax, Bhopal - 2015 (6) TMI 1069 - CESTAT NEW DELHI the Tribunal held that since the definition of inputs under Rule 2(k), includes all goods use in factory by manufacturer and lubricants being not covered under the excluded category of goods under the said Rule, credit of duty on lubricants is not to be denied. Packing material In Nilkamal Limited .....

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o load more materials per truck thereby reducing the cost of freight per piece of the product. The Commissioner passed an order demanding recovery of excise duty with penalty. The Commissioner (Appeals) allowed the appeal of the appellant. The Tribunal reversed the order of Commissioner (Appeals) holding that if the packing material had not been used for the purpose of packing the finished products the credit taken by the assessee for the duty on packing materials had to be reversed. The High Co .....

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