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TMI Blog2017 (4) TMI 1126X X X X Extracts X X X X X X X X Extracts X X X X ..... oods'. The credit has been availed on subject items treating them as inputs used in the manufacture of capital goods - credit allowed - decided in favor of appellant. - E/553/2008 - 40639/2017 - Dated:- 19-4-2017 - Ms. Sulekha Beevi C.S. Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Shri S. Murugappan, Advocate For the Appellant Shri S. Nagalingam, AC (AR) For the Respondent ORDER Per: Sulekha Beevi C. S. The appellants are aggrieved by the disallowance of credit on Raw Die Blocks and Inserts as inputs which were used in the manufacture of Dies which, in turn, are used by appellants in the production of finished excisable products, namely, Steel Forgings. 2. The appellants are manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refers to the definition of capital goods as well as inputs and submits that definition would cover the subject items and therefore credit ought to have been allowed. He stresses upon Explanation-2 to definition of inputs and submitted that the said Explanation states that input includes goods used in the manufacture of capital goods which are further used in the factory of manufacture; that by this Explanation, subject items would get covered under the definition of inputs although they may be mentioned as capital goods . It was argued by him that even if appellant pays duty upon such intermediate product, namely Dies, the situation would give rise to revenue-neutrality and therefore on this ground also, demand is unsustainable. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the intermediate product as 'capital goods'. The credit has been availed on subject items treating them as inputs used in the manufacture of capital goods. The co-ordinate Bench of the Tribunal in the case of Tata Engineering and Locomotive Co. Ltd. (supra), had an occasion to deal with a similar issue. Relevant part of the said decision is reproduced as under :- 7. In so far as merits go, we observe that the machine parts on which exemption under Notification No. 67/95 is availed were used in the maintenance of capital goods captively. The capital goods in turn were used in or in relation to manufacture of final products i.e. motor vehicles/parts which are dutiable. The Supreme Court in the case of Escort Ltd. v. CCE, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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