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TMI Blog2014 (2) TMI 723X X X X Extracts X X X X X X X X Extracts X X X X ..... e revenue cannot be said, at this stage, that these tools and tips are not capital goods. As these tools and tips are capital goods and there is no bar under the Central Excise Acts or Rules that the capital goods cannot be sent to the job-worker. Therefore, the capital goods used in the factory of the job-worker are entitled for credit to the respondent. Although the capital goods could not be re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Jindal The Revenue is in appeals against the impugned order wherein input credit on capital goods was allowed by the learned Commissioner (Appeals). The respondents have also filed Cross Objections against the revenue's appeals. 2. Brief facts of the case are that the respondents are manufacturers of C.I. Castings. As the respondents were not having the facilities for machining grinding etc. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Revenue submits that these tools and tips are not capital goods as they have not been used in the factory of the respondent and these tools and tips were not received in their factory "as such" after jobwork therefore, the respondents are not entitled to take credit of the same. The respondents have taken the credit on these tools and tips as capital goods 50% in the year of procuring and re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the job-worker are entitled for credit to the respondent. Although the capital goods could not be returned "as such" after the usage, in that circumstances also the credit cannot be denied. Further, there is no bar on the respondent to take away 50% of the CENVAT credit in the year of procurement of the capital goods and the remaining 50% in the subsequent year although they were in the possessio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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