9911796707
TMI Blog2024 (11) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... 6 - CESTAT MUMBAI] , relating to the immediately succeeding period, i.e., April 2013 to December 2013 has held that ' Considering the wide latitude offered for availment of credit, and in the absence of any allegation that research and development is not concerned with manufacture of the appellant, the disallowance of Cenvat credit does not find favour and must be set aside.' The impugned order is set aside - appeal allowed. - HON BLE MR C J MATHEW , MEMBER ( TECHNICAL ) And HON BLE MR AJAY SHARMA , MEMBER ( JUDICIAL ) Shri S A Gundecha , Advocate for the appellant Shri C Vinod , Assistant Commissioner ( AR ) for the respondent ORDER PER : C J MATHEW This appeal lies against the recovery of allegedly inadmissible credit of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , it would appear that the goods used in the factory by the manufacturer of the final product would be eligible. It is important to note here that inputs are not restricted to such goods used in the factory by the manufacturer for the final product. It would, therefore, appear that there is no bar to availing credit of goods used in the research and development wing of the manufacturing facility. There is no allegation that the appellant does not produce excisable goods; neither is there any allegation that research and development is not intended for the betterment of excisable goods manufactured by the appellant. However, a definition, by itself, would not suffice to enable availment of credit. The entitlement to Cenvat credit flows from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... res, vendors, etc., for a price and has also cleared such electricity in favour of the grid for distribution. To that extent, in our view, assessee was not entitled to Cenvat credit. In short, assessee is entitled to credit on the eligible inputs utilized in the generation of electricity to the extent to which they are using the produced electricity within their factory (for captive consumption). They are not entitled to Cenvat credit to the extent of the excess electricity cleared at the contractual rates in favour of joint ventures, vendors, etc., which is sold at a price. thus clarifying that inputs in any activity that contributes to the final product would be in compliance with the definition of input in Cenvat Credit Rules, 2004. 8. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount of Rs. 38,91,220/- (Rupees Thirty-Eight Lakhs Ninety-One Thousand Two Hundred Twenty only) is upheld. However, the penalty under 57-I is limited to Rs. 4,00,000/- (Rupees Four Lakh only). Interest under 57-I(5) is also confirmed. The penalty on M/s. Plant Organics is reduced to Rs. 50,000/- (Rupees Fifty Thousand only) under Rule 173Q(l)(bb) of the CE Rules. Having record to facts and circumstances of the case, the penalty on Shri V. Rama Krishna Rao is set aside. The appeals are disposed of in the above terms. implying that denial of credit is a consequence of establishing that the research and development facility was not integral to the manufacturing process. Such an allegation has not motivated the demand in the present instance. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
