2015 (10) TMI 2480 - AT - Central Excise

Entitlement to avail Cenvat Credit on cable tray - treatment to accessory to the capital goods - cable tray procured by the appellant for holding the cable in their factory for manufacturing of cement - Held that - The cable tray is an accessory which holds the cable and in case of a fault through the cable tray the damage portion of the cable can be found out and same can be repaired. Without this cable tray smooth functioning of the plant is not possible. In these circumstances thus hold that these cable tray are used to hold the cable for power distribution system. In these circumstances the appellant is entitled to take Cenvat Credit on cable trays being an accessory to the capital goods. - Decided in favour of assessee

Summary

The judgment by Appellate Tribunal CESTAT NEW DELHI allowed the appellant to avail Cenvat Credit on cable trays used for holding cables in their factory for manufacturing cement. The cable trays were considered essential accessories for the power distribution system in the factory, enabling the appellant to claim the credit. The impugned orders were set aside, and the appeals were allowed with consequential relief.