2018 (1) TMI 479

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... (iii) Plastic bags/sheets (iv) Cotton chedda (v) LPG gas cylinder (vi) Synthetic lubricants/grease The appellant had availed cenvat credit of duty paid on these items considering them as capital goods. The appellant herein is a manufacturer of textile and textile articles and is availing the benefit of Notification No.29/2004-CE and 30/2004-CE. 4. The case of the Revenue in the show cause notice and as adjudicated by the lower authorities is that the above items are not capital goods. Hence they are not eligible for availment of cenvat credit as capital goods and do not fall under the definition of capital goods as per the provisions of Rule 2(a) of the Cenvat Credit Rules, 2004 and the amount of credi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t of cenvat credit of central excise duty paid on LPG gas cylinder as capital goods needs to be rejected. The LPG gas cylinder is not a capital goods as the gas cylinder is only carrying LPG gas on which central excise duty is paid by the bottlers. In my view, the said LPG gas is being a fuel, credit cannot be allowed, as the provisions of Rule 2(k) of the Cenvat Credit Rules, 2004 are very clear. Accordingly, cenvat credit on the LPG gas cylinder for the entire period i.e. May 2003 to February 2006 is denied and both the lower authorities were correct in holding it so. I uphold the said findings and hold that the appellant needs to reverse the said amount along with interest. 8. As regards the eligibility to avail cenvat credit on other....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ent, when such goods are used primarily for personal use or consumption of any employee; and (F) any goods which have no relationship whatsoever with the manufacture of a final product. Explanation. For the purpose of this clause, free warranty means a warranty provided by the manufacturer, the value of which is included in the price of the final product and is not charged separately from the customer." 8.1 It is undisputed that the said items are used in factory premises of the appellant and central excise duty has been discharged on these items by the supplier/manufacturer of the said items. At the same time, I find that the appellant needs to reverse the cenvat credit attributable to the quantum of these inputs used ....