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2017 (5) TMI 1010 - AT - Central ExciseCENVAT credit - capital goods used in setting up of a paint shop - Held that - In appellant s own case for the earlier period 2013 (8) TMI 301 - CESTAT NEW DELHI , the issue came up before this Tribunal, where it was held that The purpose for which the goods were used and whether after use the goods became part of plant and machinery fixed to/embedded to the earth is not relevant - the appellant is entitled to avail cenvat credit - appeal allowed - decided in favor of assessee.
Issues: Denial of cenvat credit on capital goods used in setting up a paint shop.
In this case, the appellant, engaged in manufacturing automobile parts, appealed against the denial of cenvat credit on capital goods used in setting up a paint shop. The Revenue contended that since the paint shop was considered immovable property and not liable to duty, the appellant was not entitled to cenvat credit. The dispute revolved around whether the goods used in setting up the paint shop were eligible for cenvat credit. The Tribunal referred to a previous case where it was established that the purpose of the goods and their use in the factory were crucial for determining cenvat credit eligibility, rather than whether they became part of an immovable structure. The Tribunal held that as the goods fell under the definition of capital goods and were used in the factory, the appellant was entitled to cenvat credit. The Tribunal set aside the impugned order and allowed the appeal, providing consequential relief. The decision was based on the precedent set in the earlier case, where a similar issue was resolved in favor of the appellant. Therefore, the judgment ruled in favor of the appellant, emphasizing the importance of the purpose and use of goods in determining cenvat credit eligibility, rather than their integration into an immovable structure. The Tribunal's decision was guided by the interpretation of relevant legal provisions and previous precedent, ensuring fair treatment and upholding the appellant's right to avail cenvat credit on the capital goods used in setting up the paint shop.
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