2003 (7) TMI 240 - AT - Central Excise

Summary

Issues involved: Challenge to denial of Cenvat credit on capital goods due to ownership dispute.

Summary:
The appellants contested the denial of Cenvat credit on capital goods, Checking Fixtures, and Jigs & Fixtures, based on ownership grounds. The authorities noted that the items were owned by another entity, which had reversed the credit and the appellants received it under an invoice. The appellants argued that ownership should not determine credit eligibility, citing a precedent involving Sharda Motors Industries Ltd. The Department sought a reference to a Larger Bench for reevaluation, but the appellants maintained that the previous judgment was valid, supported by Board circulars stating ownership is not a criterion for credit. The Tribunal found the Department's request for a reference unnecessary, as the previous judgment was binding. The Board's circulars, backed by a Supreme Court ruling, affirmed that credit could be claimed regardless of ownership. Consequently, the impugned order was overturned, and the appeal was granted.