9911796707
TMI Blog2005 (7) TMI 225X X X X Extracts X X X X X X X X Extracts X X X X ..... ndent : Bidhan Chandra, JDR, Authorised Representative Order S.S. Sekhon, Member, (T) 1.1. Heard both sides and considered the issue. 1.2. The case issue is eligibility of Capital goods entitled and credit on "Coal Briquette Plant" where the appellants converted Iron Ore fines received on job work under Rule 4(5)(a) of CENVAT Rules from M/s. Ispat Industries Ltd. and returned the Briquette, f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... take Cenvat Credit is itself a creature of the statute. Therefore the correct way to proceed will be to ascertain whether such a right is available under the law. The right to take the credit is granted vide sub-rule (1) of Rule 3 which states that : "- A manufacturer of the final product shall be allowed to take the credit of the duty ....... paid on inputs or capital goods ....... received by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re' under the Central Excise Act, then nothing in the said Act or Rules made thereunder will apply to the said goods. The position is also clear from the CEGAT judgment in case of Gujarat State Fertilizer Co. Ltd. v. CCE - 1995 (80) E.L.T. 812 (Bom. CEGAT) in which the Hon'ble Tribunal dismissed the appeal. "..... in so far as the eligibility of Modvat credit in respect of duty paid on p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e factory of the manufacturer of the final products but does not include any equipment or appliance used in the office". Thus "Coal Briquette Plant" could not be excluded from the definition. (b) The term "used in the factory of the manufacture of the final products"..... could not mean an exclusive or only use, for the manufacture of final products of the availer of the credit. So long as the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tle the credit. The exclusive use as already held, is not contemplated. The plant in this case is capable for use for converting the Iron or fines to be used by the appellants at a future date. The word "used" can denote be intermittent and/or use sometime in future; we find that both sides agree that the appellants are a manufacturer of declared final products Iron and Steel and have the capacity ..... X X X X Extracts X X X X X X X X Extracts X X X X
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