TMI Blog2017 (11) TMI 1093X X X X Extracts X X X X X X X X Extracts X X X X ..... that the disputed goods are not falling under the exclusion clause provided in the definition of input. Since grinding media is used in or in relation to manufacture of the final product within the factory and in absence of use of the said goods, the ball mill cannot function, the said goods should be considered as input for the purpose of taking of cenvat credit - credit allowed - appeal allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said final product. During the disputed period, the appellant availed cenvat credit on Grinding Media Balls , considering the same as inputs. However, taking of cenvat credit by the appellant was disputed by the Department on the ground that such goods should be considered as capital goods and accordingly, the appellant was entitled to take 50% of credit in the year of receipt of such goods and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on to manufacture of final product, excepting the goods itemized therein as excluded category of goods. She further submitted that since the disputed goods i.e. Grinding Media is not falling under the excluded category of goods provided in the definition of inputs, the benefit of cenvat credit should be available on the disputed goods, considering the same as input. In support of her stand that Gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmitted that the appellant was entitled to take 50% cenvat credit in the year of receipt of the capital goods and the balance cenvat credit in the subsequent years. Accordingly, taking of 100% cenvat credit in the year of receipt of capital goods exposed the appellant for payment of the interest liability. 5. Heard both sides and examined the case records. 6. The definition of input conta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in the case of Batliboi Co. Ltd.(supra) has also extended the cenvat benefit, hold that grinding wheels merit consideration as input. 7. In view of the settle position of law, I am of the considered opinion that the appellant has rightly availed cenvat credit on Grinding Media, considering the same as input. Accordingly, the impugned order is set aside and the appeal is allowed in f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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