9911796707
TMI Blog2019 (6) TMI 677X X X X Extracts X X X X X X X X Extracts X X X X ..... as capital goods, therefore, the cenvat credit of steel gas cylinder is admissible - Credit allowed. CENVAT Credit - input - castor oil - credit was denied by the Revenue on castor oil on the ground that it is not used in the manufacturing and the credit was availed during the exemption period under SSI exemption - HELD THAT:- Even though the appellant is availing the SSI exemption since the lubricating oil is covered under the capital goods, the cenvat credit is admissible for a very simple reason that even though the credit is availed during the exemption, the same is utilized only when the appellant starts paying excise duty and there is no dispute that the lubricating oil is used for lubrication of plant and machinery of the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the factory for storage during the process of manufacturing of oxygen gas after converting the oxygen gas from the air it is filled in these cylinders, therefore, cylinders are not only used for transportation but also used for manufacture of oxygen gas, therefore, eligible for cenvat credit. He relied upon the judgment of this Tribunal in the case of Banco Products (India) Ltd. 2009 (233) ELT 636 (Tri. LB), J K Steel & Alloys 2009 (234) ELT 191 (Tri. Ahmd.). As regard cenvat credit on lubricating oil i.e. castor oil, he submits that as per the use of the lubricating oil, it is used as input in the process of manufacturing. The lubricating oil is otherwise covered under capital goods at the relevant time, hence during the exemption period, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... though the appellant is availing the SSI exemption since the lubricating oil is covered under the capital goods, the cenvat credit is admissible for a very simple reason that even though the credit is availed during the exemption, the same is utilized only when the appellant starts paying excise duty and there is no dispute that the lubricating oil is used for lubrication of plant and machinery of the appellant factory.
5. As per my above discussion, the cenavt credit on gas cylinder and lubricating oil is allowed and demand relates to these two items is set aside. Remaining demand and corresponding penalties stand confirmed as the same is not in contest. The appeal is allowed in above terms.
(Dictated & pronounced in the open court) X X X X Extracts X X X X X X X X Extracts X X X X
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