TaxTMI 
TaxTMI 
2017 (1) TMI 360
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.... Analyzer was not found installed inside the factory and the machine was also not included in the LOP. On further verification, the laboratory in which machine was installed in other use of the appellant which is a DTA unit and not in the factory premises of the appellant i.e. 100% EOU. The machine was not installed and used in the factory in violation of Rule 2(a) of Cenvat Credit Rules, 2004. In these set of facts, a show cause notice was issued to deny cenvat credit on the said machine, consequently, to demand the duty along with interest and to impose penalty on the appellant. The matter was adjudicated and cenvat credit was denied by both the authorities below. Consequently, the demand of duty was confirmed along with interest and pena....
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....es 2014 (311) ELT 691 (Tri. Del.) 5. Heard the parties and considered the submissions in detail. 6. The short issue involved in the matter is that whether the appellant is entitled to avail cenvat credit on capital goods which are installed outside the factory or not? 7. For better appropriation of the case, I have to examine Rule 2(a) of the CCR, 2004 which is reproduced as under: Capital Goods Means:- (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 chapter 6804) of the first schedule of the Excise Tariff Act; (ii) Pollution control equipments; (iii) Comp....
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....ation of electricity or steam which is used within the factory would be an input for the purposes of obtaining credit on the duty payable thereon. As far as the Explanaiton is concerned, the inputs are restricted to inputs notified under Rule 57A. There is no dispute that both explosives and limestone are notified under Section 57A for manufacture of the final product i.e. cement. 9. Further, in the case of Siva Shankar Granites (P) Ltd. (Supra), the facts of the case are that the benefit has been denied on the ground that they have used the capital goods in the mining area which was not within the bonded area in terms of the Customs Notification and in these set of facts, the Tribunal observed as under: The Capital goods have b....
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....ule 4(5)(a) cannot be denied. 11. Further, in the case of Jaypee Rewa Cement (Supra) the Hon ble Apex Court has examined the issue and hold that the capital goods used in or relation to manufacture of the final product whether directly or indirectly are entitled for cenvat credit. The issue was also examined in the case or Triveni Engg. Inds. Ltd. (Supra) wherein this tribunal observed that the capital goods should be used in the factory to manufacture of final product. Admittedly, these capital goods have been used in manufacturing of final product manufactured by the appellant. 12. I also gone through the decision of Zenith Machine Tools Pvt. Ltd. (Supra) wherein the capital goods found installed in sister concern who is a job worke....
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....redit on the capital goods which were found in the factory premises of the job worker, who is undisputedly one of the group concerns of the appellant. 13. The Ld. AR relied on the decision of this tribunal in the case of Mangal Electricals Industries (Supra) to say that cenvat credit is not available to the appellant. First of all in the case laws discussed in the preceding paragraph have not analyzed in the case of Mangal Electricals Industries (supra). Further, the said capital goods were installed in unregistered unit and never intimated to the department and during the course of investigation these capital goods has found installed in other unit but the appellant did not take any defence at that time that the capital goods has sent t....