Case Law Details
Agarwal Foundries Pvt Ltd Vs Commissioner of Customs & Central Excise (CESTAT Hyderabad)
CESTAT Hyderabad held that CENVAT Credit on inputs used for fabrication of capital goods like pollution control equipment, heating furnace, casting machine, coating machine, chimney, rolling machine, reheating machine, control panel, etc. is eligible.
Facts- The issue involved in this Appeal is whether the Appellant, MS Agarwal Foundries Pvt Ltd, have rightly taken Cenvat credit on various items of MS steel etc., utilized in fabrication of capital goods like pollution control equipment, heating furnace, casting machine, coating machine, chimney, rolling machine, reheating machine, control panel, etc., during the period December, 2005 to March, 2010.
Conclusion- Held that with the introduction of Cenvat credit rules 2004, capital goods as defined in rule 2(a)(A) of CCR includes items like pollution-control equipment, storage tank which are practically immovable. Thus, the concept of movable or immovable for allowing credit have been done away with. We further find Rule 2(K) of CCR entitles a manufacturer to take credit of all items/goods received in the factory of production whether forming part of the finished product or not. Even inputs received for fabrication of capital goods are also entitled for Cenvat credit. Only condition is that such fabricated capital goods should have been used in the production of dutiable finished goods. There is no such dispute raised in the SCN that the capital goods fabricated by the Appellant out of the inputs have not been used for manufacture of dutiable finished goods.
FULL TEXT OF THE CESTAT HYDERABAD ORDER
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