2017 (3) TMI 11

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....sh Nath, AC (AR) for the respondent ORDER The fact of the case is that the appellant imported capital goods which got damaged in transit. However, the machine was received in the factory. The insurance claim was made but the insurance claim does not include the CVD paid on the said capital goods. Thereafter survey of insurance claim was settled at Rs. 1,98,92,650/- without deduction of salva....

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.... 2. Shri Rajesh Ostwal, ld. counsel for the appellant submits that credit was availed of CVD paid on the machine though machine was damaged, insurance claim was made however subsequently after repair the same was used in the factory of the appellant. Therefore, credit is correctly available. He submits that even though the ownership does not remain with the appellant for time being the same machin....

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....2 crores, they have repurchased the machine from the insurance company only on an amount of Rs. 12 lakhs including sales tax. Therefore, for this reasons also credit should not be allowed. He submits that the ownership is important criteria for allowing the credit. In support, he placed reliance in the case of CCE vs. Associated Cement Co. Ltd. 2009 (236) ELT 240 (Kar.) 4. I have carefully cons....

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....wnership after making payment of Rs. 12 lakhs, the fact remains that the capital goods remained in the factory of the appellant subsequently installed and used by them. The ownership is not the criteria for allowing the credit on capital goods. The only criteria is that the capital goods should be installed in the factory of the assessee and used in the manufacture of final product which is not in....