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2017 (1) TMI 360 - CESTAT CHANDIGARH

2017 (1) TMI 360 - CESTAT CHANDIGARH - TMI - CENVAT credit - capital goods - denial on the ground that the laboratory in which machine was installed is in other use of the appellant which is a DTA unit and not in the factory premises of the appellant i.e. 100% EOU - whether the appellant is entitled to avail cenvat credit on capital goods which are installed outside the factory or not? - Held that: - although the capital goods has been installed in the outside the factory but the same has been u .....

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(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 manufacture of Insoluble Sulphur. During the course of audit it was found that imported ca .....

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aid machine, consequently, to demand the duty along with interest and to impose penalty on the appellant. The matter was adjudicated and cenvat credit was denied by both the authorities below. Consequently, the demand of duty was confirmed along with interest and penalty was also imposed. Aggrieved from the said order, the appellant is before me. 3. The ld. Counsel for the appellant submits that the allegation against the appellant is that the machine/capital goods is not installed in the factor .....

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. 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.) an .....

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talled outside the factory or not? 7. For better appropriation of the case, I have to examine Rule 2(a) of the CCR, 2004 which is reproduced as under: Capital Goods Means:- (A) The following goods namely- (i) All goods falling under chapter 82, chapter 84, chapter 85, chapter 90 (heading 6805 grinding wheels and the like and parts thereof falling under chapter 6804) of the first schedule of the Excise Tariff Act; (ii) Pollution control equipments; (iii) Components, spares and accessories of the .....

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r the said definition the capital goods are required to 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 clau .....

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he duty payable thereon. As far as the Explanaiton is concerned, the inputs are restricted to inputs notified under Rule 57A. There is no dispute that both explosives and limestone are notified under Section 57A for manufacture of the final product i.e. cement. 9. Further, in the case of Siva Shankar Granites (P) Ltd. (Supra), the facts of the case are that the benefit has been denied on the ground that they have used the capital goods in the mining area which was not within the bonded area in t .....

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only objection raised by the Revenue is that the quarry is not a part of the bonded premises. This view has to be negative for the reason that the capital goods have been used in manufacture of the goods which are required for export of the items in terms of para (b) of the notifications. 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 .....

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Rule 4(5)(a) are examined, then the relief eligible to the appellant under the provisions of Rule 4(5)(a) cannot be denied. 11. Further, in the case of Jaypee Rewa Cement (Supra) the Hon ble Apex Court has examined the issue and hold that the capital goods used in or relation to manufacture of the final product whether directly or indirectly are entitled for cenvat credit. The issue was also examined in the case or Triveni Engg. Inds. Ltd. (Supra) wherein this tribunal observed that the capital .....

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cenvat credit and capital goods which were found in the job workers premises. It is disuputed in this case, that the said job worker M/s Aditya Engineering is doing job work for the appellant. It is also undisputed that the entire job worked material from M/s Aditya Engineering comes to the appellant for use in the further manufacturing of excisable products. I find that the provisions of Rule 4(5)(a) very clearly envisages eligibility to cenvat credit on the inputs or capital goods which are s .....

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