2016 (10) TMI 908

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.... During the period in dispute, the appellants imported certain capital goods and availed credit of the CVD paid on such imported capital goods. A part of this capital goods was found defecting and were re-exported by the appellant under bond without payment of duty. Revenue took the view that at the time of removal of the capital goods from the factory an amount equal to the Cenvat credit taken on such goods will have to be reversed. The Original Authority vide his order dated 22/10/10 disallowed and demanded Cenvat credit to the tune of Rs. 11 lakhs. The Commissioner (Appeals) allowed such credit vide the impugned order and Revenue is in appeal before the Tribunal on this issue. The challenge by Revenue is on the point that the capital goo....

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....ich are intended to be used in the factory by the manufacturer. The Tribunal has taken the view as follows in the above case. "2.1 (c) After determining as above, we find the word 'used' in the definition of Capital Goods will not and cannot be interpreted to mean that it should be actually in use. The potential use by the manufacturer, at a later date would also entitle the credit. The exclusive use as already held, is not contemplated. The plant in this case is capable for use for converting the Iron or-fines to be used by the appellants at a future date. The word "used" can denote be intermittent and/or use sometime in future; we find that both sides agree that the appellants are a manufacturer of declared final products of Ir....