TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Modvat credit granted for essential manufacturing items in recent Appellate Tribunal decision</h1> The Appellate Tribunal allowed Modvat credit on various disputed items, including PVC Insulated Cables, Industrial Bus Duct, Control Panels, Sensors, and ... Modvat on capital goods Issues:- Eligibility of Modvat credit on various items including PVC Insulated Cables, Industrial Bus Duct, PCC Control Panel, A.C. Drives & Machines Transformer, Control Desk, Consoles for computers, Yaskawa Power Pack, RTD Sensors, Soldering Iron Cutter, Change Over Switch, Activated Alumina, Main Assembly, HOP Part of Inverter, EPS Pipe Section PFL, ABS Plastic Sleeves, Instrument Cooling Fan, Aplab Power Supply, Carbon Brush, Box Strapping Machine.Analysis:The judgment by the Appellate Tribunal CEGAT, New Delhi involved two appeals, one filed by the department and the other by the party against a common impugned order covering various items. The Commissioner (Appeals) allowed Modvat credit for RTD Sensors and Aplab Power Supply but disallowed it for other items based on a previous decision. However, the party argued that conflicting decisions warranted a reference to the Larger Bench, which concluded that wires and cables are eligible capital goods under Rule 57(2) of the Central Excise Rules.The department contended that the items in question were not clearly shown to be used in or in relation to the manufacturing process of the finished product. The party argued that items like sensors and power supply were essential for the manufacturing process, as explained in detail. The Tribunal had consistently held that if items were used in or in relation to the manufacturing process, Modvat credit should be allowed. After considering the submissions and evidence, the Tribunal accepted the party's contentions regarding the eligibility of Modvat credit for all the items in question.In conclusion, the Tribunal disposed of both appeals by allowing Modvat credit on all the disputed items, emphasizing that the items were indeed used in or in relation to the manufacturing process of the finished products. The decision was based on the consistent view of the Tribunal and the essential role played by the items in the manufacturing process, as argued by the party.
TaxTMI 
TaxTMI 
