2014 (3) TMI 784

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..... ORDER The issue to be decided is whether Lithographic Plates and Thermostar are to be treated as inputs or capital goods. The appellant is engaged in Offset printing process. Revenue has taken a view that both plates which are classified under Chapter 8442 has to be treated as capital goods and not as inputs and therefore the 100% credit taken by the appellant was wrong and on this basis, ....

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....loping. Before this activity is undertaken by the appellant, the product received by them would be classifiable under CH 37.05 only. Even though I agree with the learned Chartered Accountant that because of this decision, the Lithographic Plates received by them would be classified under 37 only but reclassification of inputs or capital goods received cannot be done at the receivers end. Therefore....

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....untant that Lithographic plates used by them cannot be considered as capital goods. Admittedly once the Lithographic plate is exposed and developed, it can be used only for printing material which has been exposed and developed on the plate. It cannot be used again for exposure and development of another matter. Needless to say utilization will not be a one time affair. If the matter and the mater....

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....le only for inputs and not for capital goods and during that period clear-cut distinction between capital goods and inputs were not available in the statute. I agree with the stand taken by the learned Chartered Accountant that what was input prior to introduction of definition of capital goods and Modvat credit for capital goods does not become capital goods once the definition of capital goods i....