9911796707
TMI Blog2011 (3) TMI 349X X X X Extracts X X X X X X X X Extracts X X X X ..... he factory for fabrication of capital goods and parts thereon - Held that:- goods mentioned in clauses (i) to (iii) of Rule 2(b), and which are used in the manufacturer’s factory, which fall within the ambit of “capital goods” - Hence, the goods in question are, admittedly, used in the repairs of capital goods in the factory of the manufacturer and, as such, fall within the ambit of Section 2(b)(i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... und that the items were used in the manufacture of capital goods and parts thereof and, as such, were eligible for Cenvat credit under Rule 2 of the Cenvat Credit Rules, 2002. In the appeal preferred by the Revenue, the CESTAT, following its ruling in India Sugars and Refineries Ltd v. CCE, Bangalore (2006) 74 RLT 61 = 2006 (205) E.L.T. 717 (Tri.) in which they had referred to the judgment of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hority that the goods in question were used for repairs of machinery, they did not fall within the ambit of "capital goods" under Rule 2 of the Cenvat Rules and, as such, no Cenvat credit could be claimed thereupon. 3. Rule 2(b) of the Cenvat Rules has been extracted in the appellate order of the Commissioner (Appeals) dated 24-3-2005, and it reads as under. Rule 2(b) "capital goods" means, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Revenue that the goods, for which Cenvat credit was claimed, are equipment or appliances used in the office. It is their case that it is only if the goods are used in the manufacture of the final product, or are goods other than those used for repairs of capital goods, would they fall within the definition of "capital goods" under Rule 2(b) of the Cenvat Credit Rules. The distinction between m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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