2015 (10) TMI 2072

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..... e items which were used for manufacture of moulds are eligible for credit. It is also the case of appellant that TMT Bar was used for stirring the metal and by its use becomes a constituent of the final product. The requirement of stirring rod in the process of manufacture is undeniable. To establish their contention, the appellants have produced a Chartered Engineer Certificate along with photographs showing the steps of manufacture/fabrication of moulds. This certificate explains the use of the impugned items in manufacture of moulds and also use of such moulds in the appellants industry. - as already stated moulds being specified as capital goods, the inputs used for manufacture of capital goods are eligible for credit. - Decided in favo .....

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..... counsel explained that the appellant being manufacturer of Ingot /castings they require moulds (capital goods) for taking out the castings in desired shape and size. Sometimes, these moulds are procured from outside, but in certain case they fabricate/manufacture these moulds within their factory. The moulds get damaged during the course of use and require replacement. As they are made of steel, old and discarded moulds are used for melting purpose along with inputs. The appellants use Shape, Section, Channel and Angle for manufacture of such moulds. Again, TMT Bar is used for stirring of hot melting metal in the furnace. Since temperature is very high they get melted and become part of final product. The remaining of the stirring bar is j .....

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..... aimed credit on these items as capital goods contending that moulds are specified in the definition of capital goods and that definition of capital goods also included parts, components and accessories used for capital goods. The Tribunal failed to appreciate this contention and disallowed the credit. Presently, the credit is claimed as inputs used for manufacturing capital goods and not as capital goods. 4. The term input has to be viewed in the light of the fact that the CENVAT Scheme is a beneficial legislation and should be given as wider meaning as possible. Inputs mean anything, i.e., put into the stream of manufacture. In the instant case, the contention of appellant is that the Sections, Shapes, Channels, Angles were used for fab .....

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