2015 (10) TMI 2343 - AT - Central Excise

Denial of CENVAT Credit - Job work - credit was denied by the department on the ground that no duty paid clearances were made by appellant as a job worker - Held that - When the job worker appellant was entitled to the exemption under mandate of notification, that does not alter characteristics of manufacture under Section 2(f) of the Central Excise Act, 1944. Therefore, denial of capital goods credit to the appellant is uncalled for. - Decided in favour of assessee.

Summary

The Appellate Tribunal CESTAT CHENNAI ruled in favor of the appellant, a manufacturer who also job worked goods for others. The tribunal held that the denial of capital goods credit by the department was unjustified as there was no provision in law for such denial. The appellant's appeal was allowed, and the Revenue's appeal was dismissed.