TMI Blog2018 (1) TMI 479X X X X Extracts X X X X X X X X Extracts X X X X ..... idered as inputs - It is undisputed that the said items are used in factory premises of the appellant and central excise duty has been discharged on these items by the supplier/manufacturer of the said items. However, the appellant needs to reverse the cenvat credit attributable to the quantum of these inputs used for manufacturing fabrics which are cleared by them availing the benefit of exemption N/N. 30/2004-CE - matter is remitted back to the adjudicating authority to calculate the amount which needs to be reversed by the appellant out of the cenvat credit availed by them and the appellant shall discharge the said proportionate amount as determined by the lower authorities along with interest. Time limitation - Held that: - he sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /2004-CE and 30/2004-CE. 4. The case of the Revenue in the show cause notice and as adjudicated by the lower authorities is that the above items are not capital goods. Hence they are not eligible for availment of cenvat credit as capital goods and do not fall under the definition of capital goods as per the provisions of Rule 2(a) of the Cenvat Credit Rules, 2004 and the amount of credit needs to be reversed. The lower authorities have confirmed the demand raised for the period May 2003 to February 2006 along with interest and also imposed penalty. 5. It is the case of the appellant that even assuming that these items are not capital goods, they would fall under the definition of inputs as these items were procured and used in the fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Cenvat Credit Rules, 2004 are very clear. Accordingly, cenvat credit on the LPG gas cylinder for the entire period i.e. May 2003 to February 2006 is denied and both the lower authorities were correct in holding it so. I uphold the said findings and hold that the appellant needs to reverse the said amount along with interest. 8. As regards the eligibility to avail cenvat credit on other items like furnace oil, petroleum coke, plastic bags/sheets, cotton chedda and synthetic lubricants/grease, I do find that these items can be considered as inputs as the definition of inputs under Rule 2(k) of the Cenvat Credit Rules, 2004 reads as under:- (k) input means (i) all goods used in the factory by the manufacturer of the final p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the customer. 8.1 It is undisputed that the said items are used in factory premises of the appellant and central excise duty has been discharged on these items by the supplier/manufacturer of the said items. At the same time, I find that the appellant needs to reverse the cenvat credit attributable to the quantum of these inputs used for manufacturing fabrics which are cleared by them availing the benefit of exemption Notification No.30/2004-CE. To this limited extent, the matter is remitted back to the adjudicating authority to calculate the amount which needs to be reversed by the appellant out of the cenvat credit availed by them and the appellant shall discharge the said proportionate amount as determined by the lower authoritie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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