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TMI Blog2014 (5) TMI 908X X X X Extracts X X X X X X X X Extracts X X X X ..... hin the respondent s factory for manufacture of final products, although the cylinders move out temporarily from the appellant s factory for the purpose of refilling of hydrogen gas. Therefore, the requirement of use of capital goods within the appellant’s factory in terms of the said Rule 2(a)(A) is fulfilled. - Therefore, the temporary to and fro movement of Hydrogen Gas Cylinders for the purpose of refilling of hydrogen gas is otherwise covered by the above provisions of the CENVAT Credit Rules, 2004 - Further, reversal of credit at the time of removal of Cylinders and taking of credit at the time of receipt of duly filled Cylinders will not help Revenue in raising any Revenue as it is Revenue neutral exercise - Decided against Revenue. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndent s factory after refilling. The respondent took CENVAT Credit of Rs. 35,37,783/- of excise duty paid on Hydrogen Cylinders under the category of Capital Goods during the period from October, 2004 to May, 2007. Revenue objected to this CENVAT Credit on the ground that the gas cylinders are not installed in the respondents factory. The original adjudicating authority disallowed the CENVAT Credit to the respondent along with interest, imposed penalty of equivalent amount under Section 11AC on the respondent, and imposed penalty of one lakh rupees on Production Manager of the respondent. On appeal, the Commissioner (Appeals) allowed respondents appeal by setting aside the Order-in-Original of the adjudicating authority. 3. Shri G. P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. It was therefore, the case of the Respondent that Revenue has gone beyond the scope of the show cause notice in filing the appeal. Learned advocate relied upon the following case laws:- (a) Bajaj Auto Limited - [2003 (151) ELT 23 (Bom.) (b) Amar Coach Builders - [2005 (191) ELT 621) Tri. Del.)] (c) Nava Bharat Ferro Alloys Limited - [2004 (166) ELT 72 (Tri. Bang.) (d) Swastik Coaters Pvt. Limited - [1999 (107) ELT 533 (Tri.)] (e) HCL Infosystems Limited -[2007 (216) ELT 728 (Tri. Chennai)] 4.2 It was also the case of the learned advocate appearing on behalf of respondents that reversal of the credit at the time of removal of Cylinders and again availing the cenvat credit at the time of getting refilled cylinders, is Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... neration of electricity for captive use within the factory; or] (2) for providing output service; A perusal of the above provisions reveals that the only condition for availing CENVAT Credit on capital goods is their use within the factory of the manufacturer in the manufacture of final products. It is not disputed that the Hydrogen Cylinders are not capital goods. At present there is no requirement under the CENVAT Credit Rules that the capital goods must be installed in the factory of production. Evidently, hydrogen gas cylinders are used within the respondents factory for manufacture of final products, although the cylinders move out temporarily from the appellants factory for the purpose of refilling of hydrogen gas. Therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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