Cenvat credit on capital goods in another unit cannot be denied when used for manufacturing the same final products.

Cenvat credit on capital goods cannot be denied merely because the goods were installed in another unit of the same assessee rather than in the registered main premises, where both units are within the same jurisdiction and the goods are used for manufacture of the same final products. The Tribunal applied the principle that intra-group movement of capital goods between the assessee's own units does not, by itself, defeat credit eligibility when the goods contribute to the manufacturing process. On that basis, the denial of Cenvat credit was found unjustified and the assessee was entitled to the credit.

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Issues: Whether Cenvat credit on capital goods installed in the appellant's other unit could be denied merely because the capital goods were not installed in the registered main premises.

Analysis: The capital goods were installed in another unit owned by the appellant, situated within the same jurisdiction, and the goods manufactured there were received by the appellant. The denial was based on the view that credit could be taken only if the capital goods were used in the registered premises. The Tribunal followed the principle that where capital goods move only between the assessee's own units and are used for manufacture of the same final products, credit cannot be denied merely on the ground that they are not in the registered premises.

Conclusion: The denial of Cenvat credit was unjustified and the appellant was entitled to the credit.

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