https://www.taxtmi.com/caselaws?id=751445 CESTAT Chennai allowed the appeal regarding CENVAT credit on capital goods used for paint shop fabrication. The department erroneously analyzed whether the assembled paint shop constituted excisable goods rather than examining if individual machinery components qualified for credit. The appellant had legitimately availed credit on various machinery parts and structural items under Chapters 73, 84, and 85 used for paint shop setup, which was integral to car painting operations. Tribunal relied on precedents from Hyundai Motor India and Omax Auto cases establishing credit eligibility for paint shop components. Regarding limitation, since demand was based on appellant's own book figures without establishing positive suppression acts, extended period invocation was invalid per Pushpam Pharmaceuticals SC precedent. The show cause notice was time-barred, and the impugned order was set aside. en-us Mon, 15 Apr 2024 00:00:00 +0530 Tue, 16 Apr 2024 21:35:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=751445 CESTAT Chennai allowed the appeal regarding CENVAT credit on capital goods used for paint shop fabrication. The department erroneously analyzed whether the assembled paint shop constituted excisable goods rather than examining if individual machinery components qualified for credit. The appellant had legitimately availed credit on various machinery parts and structural items under Chapters 73, 84, and 85 used for paint shop setup, which was integral to car painting operations. Tribunal relied on precedents from Hyundai Motor India and Omax Auto cases establishing credit eligibility for paint shop components. Regarding limitation, since demand was based on appellant's own book figures without establishing positive suppression acts, extended period invocation was invalid per Pushpam Pharmaceuticals SC precedent. The show cause notice was time-barred, and the impugned order was set aside. Case-Laws Central Excise Mon, 15 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=751445