2014 (5) TMI 908

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....e that M/s Aarti Industries Limited, the respondent, are engaged in the manufacture/ processing of Organic and Inorganic Chemicals and availing CENVAT Credit. The respondent purchased cylinders for storage of hydrogen gas for use in the process of manufacture of various chemicals in its factory. The hydrogen gas is procured from various suppliers, and in this process the empty Hydrogen Cylinders have to move out from the respondent's factory frequently for refilling of hydrogen gas. After refilling, the Hydrogen Cylinders are received back in the respondent's factory and put to use in the appellant's factory for manufacture of final products. The Hydrogen Cylinders are installed on hired vehicles and interconnected to form 'hydrogen cylinde....

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.... Limited 2 (a) (A) of the Cenvat Credit Rules, 2004. That there was no requirement under the said Rules that the Capital Goods must be installed in the factory for availing Cenvat Credit. He cited the following case laws to show that condition of use of capital goods is satisfied even if the capital goods temporarily move out from the factory for repairs or for transportation of inputs/final products: (i) GNFC Limited. Vs. Commissioner of Central Excise, Vadodara - [2012 (278) ELT 273 (Tri. Ahmd.)]; and (ii) Diamond Cements Vs. Commissioner of Central Excise, Bhopal - [2006 (205) ELT 868 (Tri. Del.)]. 4.1. It has been further argued by the Respondent that Commissioner (Appeals) does not dispute the use of Hydrogen Cylinder bank in the fa....

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....sp;           (A) the following goods, namely :- (i) all goods falling under Chapter 82, Chapter 84, Chapter 85, Chapter 90, [heading 6805, grinding wheels and the like, and parts thereof falling under heading 6804] of the First Schedule to the Excise Tariff Act; (ii) pollution control equipment; (iii) components, spares and accessories of the goods specified at (i) and (ii); (iv) moulds and dies, jigs and fixtures; (v) refractories and refractory materials; (vi) tubes and pipes and fittings thereof; [*?*?* ] (vii) storage tank, [and] [(viii) motor vehicles other than those falling under tariff headings 8702, 8703, 8704, 8711 and their chassis [but including dumpers and tippers],] u....

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....cture of final products] or any other purpose, and it is established from the records, challans or memos or any other document produced by the manufacturer or provider of output service taking the CENVAT credit that the goods are received back in the factory within one hundred and eighty days of their being sent to a job worker and if the inputs or the capital goods are not received back within one hundred eighty days, the manufacturer or provider of output service shall pay an amount equivalent to the CENVAT credit attributable to the inputs or capital goods by debiting the CENVAT credit or otherwise, but the manufacturer or provider of output service can take the CENVAT credit again when the inputs or capital goods are received back in hi....