Dear Sir,
Ours is foundry and we are manufacturing castings. We are purchasing plywoods for pattern mounting purpose and also availing Cenvat credit on plywood. We have availed some of cenvat credit of plywood in inputs as well as few invoices in capital goods. During Excise audit, department has taken objection that plywood is not eligible as input or capital goods and issued show cause notice. I required case law relating to this issue. Can any one help me by giving case law for above.
Foundry Challenges Central Excise over Cenvat Credit Eligibility on Plywood for Pattern Mounting; Seeks Case Law Support A foundry involved in manufacturing castings is facing an issue with the Central Excise department regarding the eligibility of Cenvat credit on plywood used for pattern mounting. The department objected, stating plywood does not qualify as input or capital goods, and issued a show cause notice. The foundry seeks case law to support their position. A respondent clarified that structural components essential to machinery are eligible as inputs, while those used for foundation or support of capital goods are excluded, referencing a CBE&C circular. The eligibility depends on whether the component is part of equipment or a supporting structure. (AI Summary)
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