1. Search Case laws by Section / Act / Rule — now available beyond Income Tax. GST and Other Laws Available
2. New: “In Favour Of” filter added in Case Laws.
Try both these filters in Case Laws →
TaxTMI Login
🚀 New: Section-Wise Filter ✕
Just a moment...
1. Search Case laws by Section / Act / Rule — now available beyond Income Tax. GST and Other Laws Available
2. New: “In Favour Of” filter added in Case Laws.
Try both these filters in Case Laws →
Press 'Enter' to add multiple search terms. Rules for Better Search
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
<h1>Tipper Chassis as Capital Asset, No Cenvat Credit Allowed, Penalty Reduced</h1> The Tribunal concluded that the 'tipper chassis' used in the manufacture of sponge iron cannot be classified as an input but rather as a capital asset, ... - Issues involved: Interpretation of Cenvat Credit Rules regarding the classification of equipment used in the manufacture of sponge iron as either inputs or capital goods, and the applicability of an amendment to Rule 2(c) made on 22-6-2010.Interpretation of Cenvat Credit Rules:The Appellant, a manufacturer of sponge iron, had taken cenvat credit on a 'Tipper chassis' used within the factory. The Revenue demanded reversal of the credit, stating that the goods could not be considered as capital goods or inputs for the manufacture of sponge iron. The Counsel for the appellant argued that an amendment to Rule 2(c) of the Cenvat Credit Rules in 2010 should apply to equipment received even prior to that date. The Revenue contended that the amendment would only apply to capital goods received after the specified date. The Tribunal considered the definitions of 'inputs' and 'capital goods' under the Cenvat Credit Rules, highlighting that inputs are goods consumed in the manufacture of excisable products, while capital goods are assets used in the factory for production. It was concluded that the 'tipper chassis,' being a capital asset, cannot be classified as an input. Additionally, since Chapter 87 was not included in the list of capital goods during the relevant period, credit could not be granted on the item as a capital good. The Tribunal dismissed the appeal on this main issue.Reduction of Penalty:The Appellant requested a reduction in the penalty amount imposed under Rule 15 of the Cenvat Credit Rules, which mandates a penalty equal to the duty involved. The Tribunal acknowledged the appellant's plea and decided to reduce the penalty from the initial amount to &8377; 15,000. The appeal was dismissed except for the reduction in penalty granted. The stay petition and appeal were disposed of accordingly.
TaxTMI 
TaxTMI 
