Cenvat of capital goods received in factory and used in manufacture of dutiable final product duly eligible

Commissioner of Central Excise and CGST Vs Hindustan Zinc Ltd (CESTAT Delhi)

CESTAT Delhi held that Cenvat Credit in respect of capital goods parts/spares/components received in the factory of the manufacturer and used in manufacture of dutiable final product is duly eligible.

Facts- The respondent, is engaged in the manufacture of Zinc ingots, lead, etc. falling under Chapter 79 to the Central Excise Tariff Act, 1985. Cenvat credit is availed on various inputs, capital goods, and input services in terms of the provisions of the Cenvat Credit Rules, 2004.

The Respondent engaged M/s Thermax Ltd., Pune for setting up Tail Gas Treatment Plant (TGT Plant) inside the factory premises.
A Show Cause Notice was issued to the Respondent, proposing to deny and recover Cenvat credit availed on duty paid parts, components, spares, accessories used in the TGT Plant, along with interest and penalty.

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