9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2007 (12) TMI 402 - AT - Central Excise
Issues involved: Denial of credit for welding electrodes, copper tubes, plain plates/sheets, paint, and DA gas.
Welding electrodes and DA gas: The Tribunal's precedent established that welding electrodes and DA gases are not eligible for credit as inputs for capital goods, as they are used for maintenance purposes only. Therefore, the denial of credit for these items was upheld. Copper tubes: The appellant argued that copper tubes should be eligible for credit as they are used in the factory for manufacturing the final product, in line with the definition of capital goods under the CENVAT Credit Rules. The Revenue contended that the exact use of the pipes was not demonstrated, leading to the denial of credit. The appellant clarified that the tubes are used as component parts in the production of sugar, making them eligible for credit. Plain plates and plain steel sheets: The appellant asserted that these items are used in fabricating parts of capital goods, which was not disputed by the authorities. The denial of credit was based on the lack of provisions for allowing credit on raw materials of capital goods. However, as per the definition of inputs under the CENVAT Credit Rules, goods used in manufacturing capital goods are eligible for credit. The Commissioner (Appeals) found that the sheets and plates were indeed used as parts or components of machines, leading to the setting aside of the denial of credit. Paint: The definition of inputs under the CENVAT Credit Rules explicitly includes paint. Since paint is used in or in relation to the manufacture of the final product within the factory, the denial of credit for paint was deemed unsustainable and set aside. Penalty: Given the Tribunal's resolution of the issue regarding credit for welding electrodes and the existence of divergent views previously, the imposition of penalties for the denial of credit on electrodes and DA gases was deemed unwarranted. Therefore, the penalties were set aside, and the appeals were disposed of accordingly.
|
