https://www.taxtmi.com/caselaws?id=375546 Grinding wheels, cutting tools and inserts used in the manufacture of the final product were treated as inputs for Cenvat credit purposes, because the decisive test under the Cenvat Credit Rules is the actual use of the goods in manufacture rather than their description as capital goods. Credit was therefore admissible. Penalty relating to refractory items was also found unsustainable because the interest liability had been discharged before the show cause notice, leaving no basis for penal action or an allegation of intent to evade duty. The challenged order was set aside and the assessee succeeded on both issues. en-us Mon, 18 Feb 2019 00:00:00 +0530 Thu, 21 Feb 2019 06:16:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=375546 Grinding wheels, cutting tools and inserts used in the manufacture of the final product were treated as inputs for Cenvat credit purposes, because the decisive test under the Cenvat Credit Rules is the actual use of the goods in manufacture rather than their description as capital goods. Credit was therefore admissible. Penalty relating to refractory items was also found unsustainable because the interest liability had been discharged before the show cause notice, leaving no basis for penal action or an allegation of intent to evade duty. The challenged order was set aside and the assessee succeeded on both issues. Case-Laws Central Excise Mon, 18 Feb 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=375546