9911796707
TMI Blog2025 (3) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... the department is that the appellants are not entitled to Cenvat Credit as such fuel is a part of the ship as held by the Hon'ble Gujarat High Court-2013 (288) ELT 347 (Guj.) in the matter of Priya Holding Pvt. Ltd Vs. Commissioner of Customs (Prev) which dealt with the classification of the oil in the engine of the vessel and declared that the same was classifiable under Chapter Heading 89.08 when imported into India. Same view was endorsed by the Hon'ble Supreme Court in the matter of Mahalaxmi Ship Breaking Corporation Vs. Commissioner of Customs, Bhavnagar-2023 (384) ELT 482 (S.C). The view point of the department as emerging from findings and as reiterated by the Learned AR is that such Oil being part of the vessel is not entitled to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... floating structure shall amount to 'manufacture Section XV covers all goods and materials falling under section 72 to 83 of the Schedule 1 appended to the Central Excise Tariff Act, 1985. Thus, all such goods and materials obtained by such process are considered as 'excisable goods being subject to levy of duties of excise as per section 2 (d) of the Central Excise Act, 1944. As a corollary the goods and materials, except those covered under section XV (Chapter 72 to 83) are considered as non-excisable irrespective of the fact that they are obtained by breaking up of ships. Thus, Fuels and Oils are non-excisable. It is in this context the cenvat credit of CVD paid on fuel and oils was denied to the Respondent by the adjudicating ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... excisable goods. This was made clear by para 3.7 of CBEC Manual for supplementary instructions that states as follows: "CENVAT credit is also admissible in respect of the amount of inputs contained in any of the waste, refuse or by-product. Similarly, CENVAT is not be denied if the inputs are used in any intermediate of the final product even if such intermediate is exempt from payment of duty. The basic idea is that CENVAT credit is admissible so long as the inputs are used in or in relation to the manufacture of final products, and whether directly or indirectly." 5.1 There can be no doubt that for the purpose of carrying out the manufacturing activity as envisaged under note 9 to section xv viz. obtaining goods and material by bre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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