2010 (4) TMI 787

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..... ed in various States - The provisions of Rule 4(5)(a) of the Cenvat Credit Rules, 2004 allows an assessee to avail the credit on Capital Goods even if they are sent to job worker for any other purpose - The provisions of Rule 4(5)(a) have not been examined by the lower authorities in this case - If the provisions of Rule 4(5)(a) are examined, then the relief eligible to the appellant under the pro .....

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..... ) and availed Cenvat credit to the tune of Rs. 2,35,899 and Cess of Rs. 3,719. The appellants have kept only one "BT Tint master Machine" in the factory premises and the rest of the capital goods have been shifted to their branch offices located at different places in various states. The department denies CENVAT credit on Capital goods, which were transferred to their branch offices located at var .....

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..... al Dispensers. It is his submission that these tinting machines and manual dispensers were used for the colour combination or for matching colours as per the requirement of customers and hence could have been more useful at the depots and branches of the appellant. It is his submission that due to this reason, the appellant cleared these machines to their depots in various States. He would submit .....

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..... rically lays down that the said capital goods should be used in the factory of the manufacturer of final products. It is her submission that when the Capital goods are not used in the factory of manufacturer of final products, credit should not be allowed as the paints, which are cleared to the branches or depots are manufactured final products. 6. I have considered the submissions made at lengt .....

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..... 5)(a) are examined, then the relief eligible to the appellant under the provisions of Rule 4(5)(a) cannot be denied. Without expressing any opinion on the merits of the case, I set aside the impugned order and remand the matter back to the Adjudicating Authority to re-consider the issue afresh as it is undisputed that the machines are sent to the appellant's own depots where they use the machines .....

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