2017 (2) TMI 316

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..... e. Therefore, the goods which were not used by the appellant credit of the same cannot be allowed. As regards the subsequent import of the spare which were used for replacement credit is available for the simple reason that those parts were used in the capital goods which is for further manufacture of final products. For allowing the credit it is the primary condition that goods should be used in the factory of the manufacturer in or in relation to the manufacture of final product. It is undisputed that the parts which got damaged in the capital goods, the modvat credit proportionate to said damaged parts shall not be available to the appellant as the same were not used. Extended period of limitation - Held that: - there is suppress .....

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..... nnot be allowed. The department also taken support that the appellants have claimed the insurance towards the damaged parts as well as damage to the machines. The adjudicating authority confirmed the demand of modvat credit which was upheld by the Commissioner (Appeals). Therefore, the appellant is before me. 2. Shri M.P. Joshi, ld. counsel for the appellant submits that the appellant have paid entire duty on the machines as well as on the spares which were received in the factory. Therefore credit of CVD paid on both should be allowed. The insurance claim has no relevance to the claim of the modvat credit as no restriction is provided for taking credit if any capital goods on which credit was taken got damaged and insurance was claimed. .....

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..... subsequent import of the spare which were used for replacement credit is available for the simple reason that those parts were used in the capital goods which is for further manufacture of final products. For allowing the credit it is the primary condition that goods should be used in the factory of the manufacturer in or in relation to the manufacture of final product. It is undisputed that the parts which got damaged in the capital goods, the modvat credit proportionate to said damaged parts shall not be available to the appellant as the same were not used. As regards the decision in the case of DCW Ltd. (supra) relied upon by the ld. counsel, I am of the view that in the said case though the machine was damaged but it was repaired a .....

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