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2017 (1) TMI 29 - AT - Central ExciseCENVAT credit - inputs in the fabrication / manufacture of cranes which in turn used in the factory premises for handling materials - Held that - the items of goods involved in the present appeal are not supporting structure but they are used for manufacture of assembly lines and tracks for hoists and cranes without which it is not possible to manufacture the final products - credit allowed - appeal allowed - decided in favor of appellant.
Issues: Appeal against Order-in-Appeal upholding Order-in-Original regarding wrongful Cenvat credit availed by the appellant.
Analysis: The appellant, engaged in manufacturing Copper Wires and Cables Cords, availed credit on inputs and capital goods. A Show-Cause Notice was issued proposing recovery of wrongfully availed Cenvat credit. The appellant refuted the allegation, stating the goods were used in the fabrication of cranes for handling materials. The Assistant Commissioner confirmed the demand, and the Commissioner (Appeals) upheld the Order-in-Original. The appellant appealed to the Tribunal, arguing the impugned order was against established law and the goods were used in manufacturing assembly lines for hoists and cranes, crucial for the manufacturing process. The appellant cited relevant case laws to support their argument. The Tribunal considered submissions from both sides and reviewed the cited judgments. It was concluded that the goods in question were not supporting structures but were used in manufacturing assembly lines and tracks for hoists and cranes, essential for producing the final products. Relying on the cited judgments, the Tribunal found the impugned order unsustainable. Consequently, the impugned order was set aside, and the appeal was allowed with any consequential relief. In summary, the Tribunal ruled in favor of the appellant, stating that the goods were integral to the manufacturing process and not merely supporting structures, as argued by the Department. The decision was based on the importance of the goods in manufacturing assembly lines and tracks for hoists and cranes, essential for the production of final products. The Tribunal's decision was supported by relevant case laws and established legal principles.
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