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TMI Blog2024 (12) TMI 791X X X X Extracts X X X X X X X X Extracts X X X X ..... dit was never ever utilised by the Appellant to its fullest extent and proportionate interest was also paid for the expressly debarred period. The order passed by the Commissioner of Central Excise, Mumbai-III is hereby set aside - Appeal allowed. - HON BLE DR. SUVENDU KUMAR PATI , MEMBER ( JUDICIAL ) And HON BLE MR. ANIL G. SHAKKARWAR , MEMBER ( TECHNICAL ) Shri P. K. Shetty , Advocate for the Appellant Shri Vinod S. Chettiparambil , Assistant Commissioner , Authorised Representative for the Respondent ORDER PER : DR. SUVENDU KUMAR PATI Availment of 100% CENVAT Credit on cylinders (also known as base-shell) falling under Chapter 84 of Central Excise Tariff Act, 1985 considering the same as input instead of 50% of the credit, being maximu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring course of hearing of the appeal learned Counsel for the Appellant Mr. P.K. Shetty submitted that they had used copper plated MS roll cylinder as component of printing cylinders which are eligible for full availment of credit as they were inputs in view of exclusion Clause C to Rule 2(k) of CENVAT Credit Rules, 2004 and even by going with the contention of the Department that those are capital goods in which only 50% of the entire CENVAT Credit can be availed for the first year, Appellant had promptly paid interest on the other 50% of the credit, from the day of its availment till it was availed as per department s version and the same is inconformity to judicial precedent set on the issue including the one reported in 2013 (294) ELT 30 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as availment of credit and recovery was order under Rule, 14 of the CENVAT Credit Rules, 2004 without reference to its first provision i.e. sub-Rule (i) that deals with CENVAT Credit taken wrongly and not utilised or to that of sub-Rule 2(ii) which directs for recovery of credits validly taken but utilised wrongly . However, in the instant case going by Rule, 4(2)(a) it would show that taking credit itself would be cognizable if it exceeds an amount more than 50% of the duty paid on the capital goods in a financial year, though in subsequent financial years, the balance 50% can be taken but this together with proviso to sub-Rule 7 of CENVAT Credit Rules, 2004 would indicate that a manufacturer or provider of output service shall not take C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Cylinders are fitted to the printing machinery. The printing cylinders are mounted on various printing stations of the printing machine as per the required colour combination sequence and number of colours to be used. The printing takes place on different material like polyester film, BOPP, Opaque paper etc. For each job different sets of cylinders are required. I find that the Cylinders are an integral part of the printing machine without which the printing machine cannot perform and execute the job. The functioning of the printing machine is solely depended on the cylinders attached to the machine. Thus, I find that Cylinders are nothing but capital goods. (Underlined to emphasise) From the above observation it is crystal clear that tho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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