2016 (12) TMI 1660 - AT - Central Excise

CENVAT credit - cable tray - Held that - the cable tray was used by the respondent within its factory for controlling damage to the electric cables which are used for uninterrupted transmission of power to the plant facilities - Since the cable tray is used in or in relation to the manufacture of the final product and the said goods are not falling within the exclusion category provided in the definition of input in Rule 2 (k) of the CCR, 2004 - credit allowed - appeal dismissed - decided against Revenue.

Summary

Issues:
Allowance of cenvat credit on cable tray.

Analysis:
The appeal was filed by the Revenue against an order passed by the Commissioner of Central Excise, Jaipur, allowing cenvat credit amounting to ?15,83,775/- on cable tray taken by the respondent. The Commissioner justified the allowance by stating that the cable trays were used within the factory to carry electric cables and control damage to facilitate uninterrupted power transmission. The Commissioner also cited precedents to support the decision.

Upon hearing both sides and examining the records, the Member (Judicial) found that the cable trays were indeed used by the respondent within the factory to control damage to electric cables essential for uninterrupted power transmission to plant facilities. The Member noted that since the cable trays were used in or in relation to the manufacture of the final product and did not fall within the exclusion category in the definition of input under Rule 2 (k) of the Cenvat Credit Rules, 2004, the cenvat credit on the cable trays should not be denied to the respondent.

Consequently, the Member concluded that there was no infirmity in the impugned order and dismissed the appeal filed by the Revenue. The judgment was dictated and pronounced in the Open Court by the Member (Judicial).