2009 (7) TMI 1111 - AT - Central Excise

Summary

In the appellate tribunal CESTAT BANGALORE case citation 2009 (7) TMI 1111, the issue at hand was the about the denial of Cenvat credit on capital goods purchased by M/s. Sirigiri Plastic Industries, which were found installed in a different factory premises. The appellant argued that the capital goods were shifted to a leased premises due to lack of space in their registered factory, and thus credit should not be denied. They cited a previous Tribunal case to support their claim. On the other hand, the respondent contended that credit on capital goods can only be availed when used for manufacturing dutiable products in the receiving unit. They referred to other Tribunal decisions to back their argument.

After considering both sides and reviewing the records, the tribunal found that the disputed capital goods were not installed in the applicant's factory premises but were in possession and still the same. Citing the previous Tribunal case, the tribunal ruled in favor of the applicant, granting a prima facie case for waiver of pre-deposit of the amounts involved and staying recovery until the appeals are disposed of. The stay application was allowed, and the appeals were scheduled for a hearing in due course.