TMI Blog2017 (1) TMI 360X X X X Extracts X X X X X X X X Extracts X X X X ..... IA], where it was held that the capital goods used in or relation to manufacture of the final product whether directly or indirectly are entitled for cenvat credit - the appellant is entitled to avail cenvat credit on capital goods in dispute - appeal allowed - decided in favor of appellant. - E/60038/2016- (SM) - A/61636/2016-SM[BR] - Dated:- 9-11-2016 - Mr.Ashok Jindal, Member (Judicial) Sh. Surjeet Bhadu, Sh. Veer Singh, Sh. Rupinder Singh, Advocates- for the appellant Shri. R.K. Sharma, A.R.- for the respondent ORDER Per Ashok Jindal: The appellant is in appeal against the impugned order denying the cenvat credit on the capital goods. 2. The brief facts of the case are that the appellant is engaged in the man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 (SC ) which has been followed by this Tribunal in the case of Siva Shankar Granites (P) Ltd. reported in 2006 (206) ELT 505 (Tri. Bang.). Further, followed in the case of Surya Colour Products P. Ltd. 2012 (280) ELT 455 (Tri. Bang.). Further, in the light of the decision of Jaypee Rewa Cement reported in 2001 (133) ELT 3 (SC). He also relied on the decision of this Tribunal in the case of Triveni Engg. Inds. Ltd. 2014 (303) ELT 129 ( Tri. Del.) . Further he also relied on the decision of this Tribunal in the case of Zenith Machine Tools Pvt. LTd. 2010 (255) ELT 83 (Tri. Bang.) and M/s Glaxosmithkline Consumer Health Ltd. vide Final Order No. 61053-61054/2016 dated 09/08/2016, therefore, he prayed that cenvat credit b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be used in the factory of the manufacturer of the final products. In this case, the capital goods have been installed outside the factory but they have been used in manufacture of their final product for testing purpose, this fact is not disputed. The similar issue has been examined by the Hon ble Apex Court in the case of Vikarm Cement (Supra) wherein the Hon ble Apex Court observed as under: It appears to us on a plain reading of the clause that the phrase within the factory of production means only such generation of electricity or steam which is used within the factory would qualify as an intermediate product. The utilization of inputs in the generation of steam or electricity not being qualified by the phrase within the factory of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . and this Tribunal allowed the cenvat credit. 10. Further, in the case of Surya Colour Products P. Ltd. 2012 (280) ELT 455 (Tri. Bang.) has allowed the cenvat credit by observing as under: I find that both the lower authorities have proceeded on the ground that the appellant had not used these machines in the factory of the manufacturer of final products. From the records, it seem so. At the same time, I find that the provisions of Rule 4(5)(a) of the Cenvat Credit Rules, 2004 allows an assessee to avail the credit on capital goods even if they are sent to job worker for any other purpose. The provisions of Rule 4(5)(a) have not been examined by the lower authorities in this case. If the provisions of Rule 4(5)(a) are exam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to job worker. The only condition in Rule 4(5)(a) is that the said capital goods has to be received back within 180 days of that being sent to job worker and this condition not complied with, then assessee shall reverse an amount equivalent to the cenvat credit taken and can take the cenvat credit when the capital goods are received back in the factory or the job worker s premises. I find that there is no dispute that the said capital goods are utilized by the job worker, it would lend support to the argument that there would be a revenue neutrality and the reversal of cenvat credit would be revenue neutral as the appellant is entitled to take credit on such amount as soon as he receives the capital goods back from the job worker s premise ..... X X X X Extracts X X X X X X X X Extracts X X X X
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