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Facts
The Appellant, a
manufacturer of glass fibre, was using ‘bushings’ as components and
availed 50% of CENVAT credit in respect thereof as part of capital
goods. In subsequent year, such ‘bushings’ were re-exported for remaking
& assessee availed balance 50% CENVAT credit. By applying
provisions of Rule 4(2) of CENVAT Credit Rules, 2004, revenue rejected
subsequent availment on ground that such capital goods were not in their
possession at the time of availment & ‘bushings’ received in
subsequent year are newly manufactured goods.
Held
The
Tribunal noticed that as per Rule 4(2)(b) of CENVAT Credit Rules, 2004,
balance CENVAT credit can be availed in sub-sequent financial year
provided capital goods other than components, spares & accessories,
refractories & refractory materials, moulds and dies, are in
possession of manufacturer of final product or output service provider.
It was held that ‘bushings’ being components, condition of possession of
same in subsequent year for availing balance 50% CENVAT credit is not
applicable.
