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TMI Blog2023 (2) TMI 477X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the spares and accessories were used in or in relation to the manufacture of excisable goods of the appellant - Secondly, the similar issue has been decided in the appellant s own case in respect of capital goods i.e. machineries installed in the Appellant s Unit-2 in M/S EIMCO ELECON INDIA LTD. VERSUS C.C.E. S.T. -VADODARA-I [ 2019 (1) TMI 173 - CESTAT AHMEDABAD ] and Tribunal held that the essential condition for availment of credit as interpreted by various courts is that the capital goods should be used in or in relation to manufacture of the final product and even if the same are used outside the factory for the said purpose the credit cannot be denied so long as the said capital goods are not alienated by the appellant. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sue decided in aforesaid decision, therefore the issue is no longer in dispute. 3. Shri Sanjay Kumar, Superintendent (AR) appearing on behalf of the Revenue reiterates the findings of the impugned order. 4. I have carefully considered the submissions made by both sides and perused the record. I find that objection of the department is that since spares and accessories procured by Unit-1 is used in Unit-2 where the Laser Cutting machines was installed, the credit for the same is in dispute. Firstly, I find that the excisable goods manufactured and cleared from the appellant s Unit-1, therefore, it is undisputed that the spares and accessories were used in or in relation to the manufacture of excisable goods of the appellant. Secondly, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id amount was on the ground that the capital goods installed in their Mother Roll Plant was eligible for the credit of duty inasmuch as the said plant process the goods of the registered factory. The original authority rejected the claim by holding that 57Q(1) stipulates that the capital goods should be installed in the place of manufacture of final products and not in the place outside the place of manufacture of final products. The Commissioner affirmed the order of the original authority. The respondent approached the Tribunal and the Tribunal by the impugned order dated 15-10-2004 allowed the appeal and directed for refund to be sanctioned. Before passing the impugned order, the Tribunal called for the report of the Commissionerate. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is also not the case of the appellant that by usage of the capital goods in the Mother Roll Plant, the same was in any way alienated to any one, other than the respondent factory. 8. The salient points noted in the report of the Commissioner established beyond doubt that the capital goods were used in the factory of the respondent for the purpose of manufacture of final products. When the above said conclusion was inevitable, as held by the Tribunal, the respondent was entitled to avail Modvat credit duty paid on the capital goods concerned. Consequently, the order of the Tribunal cannot be faulted. The question of law is therefore, answered in the negative and the appeal stands dismissed. No costs. Consequently, connected C.M.P. No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sequential relief to the appellants. In case of Mileen Engineers (supra) also Tribunal observed in para 7 8 as follows: 6. I find that though the appellant has taken credit at the time of receiving of capital goods but it is also fact that capital goods was installed in the adjacent premises and used in relation of manufacture of final product in the registered premises. Since capital goods was used in the manufacture of final product for which excise duty is paid, in my view, credit is admissible from the date of installation and use of capital goods. Incorporation of the said premises is merely procedure requirement. The main requirement of availing Cenvat credit is that capital goods should be used in the manufacture of duti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enue on the application for common registration made by the appellant. The said application was neither accepted nor rejected. In these circumstances, it is apparent that the appellant had sought to follow all the requirements of the cenvat credit Rules, before availing the cenvat credit. 6 . In view of above cited case laws and special circumstances of the case, we do not find any merit in the impugned order. Accordingly, the impugned order is set aside and the appeal is allowed with consequential relied. 5. In view of my above observation which is supported by aforesaid decision of this Tribunal, the issue is no longer res-integra. Accordingly, the impugned order is set-aside and the appeal is allowed with consequential relief. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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