2015 (10) TMI 2397

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....iled cenvat credit on capital goods i.e. hydraulic bale press machine as the same was used by the appellant in another premises for short time besides being used in the factory. The notice finalized in the Order-in-Original which denied the cenvat credit. In appeal, the Commissioner (Appeals) upheld the same. Hence this appeal. 3. According to the appellant the hydraulic bale press machine was used in the factory for carrying out manufacture of packing bags. Appellant paid excise duty of Rs. 86,520/- on the machine, and availed credit of 50% in the same financial year and 50% in the next financial year. It is the case of appellant that due to shortage of space in factory, another premises near the factory was taken on rent. This premises w....

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....ubmitted that the movement of goods on challans were done as for job work though no job work was done. The Commissioner (Appeals) in para 11 has discussed that the appellant has taken semi finished goods outside their factory premises for completion of manufacturing process due to shortage of space in the factory, and the finishing work of stitching and packing is being done by the appellant without hiring or engaging another person for doing the said work. That as no job worker is involved the provisions of Rule (5) of Cenvat Credit Rules do not apply. 7. The machine was removed from the factory to a nearby premises for finishing of the manufacturing process. Department does not have a case, that the movement of machine or that of semi fi....

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....he condition namely that the said capital goods were used in the factory for the manufacture of final products. The salient points noted in the report establishes beyond doubt that except the fact that the capital goods were used in the respondent's own premises situated just 500 mts away from the place of manufacture and that after carrying out necessary connected processes in that premises which is called as Mother Roll Plant, the same is brought to the place of manufacture where the final products is rolled out. Therefore, the activity of the respondent in the usage of the capital goods can be said to be part of its manufacturing activities of final product in its registered factory. It is also not the case of the appellant that by usage....