27 May 2015
CBEC had clarified vide para 5 of circular No. B4/7/2000-TRU dated 3-4-2000, that Cenvat credit should not be denied if the inputs are used in any intermediate of final product, even if such intermediate product is exempt from payment of duty. The idea is that Cenvat credit is available so long as the inputs are used in or in relation to manufacture of final product, and whether directly or indirectly – view reiterated in Chapter 5 Para 3.9 of CBE&C’s CE Manual, 2001
Lubricating oil and grease- Lubricating oil and greases used for lubricating machinery are eligible. – CCE v. Modi Rubber Ltd. 2000(119) ELT 197 = 38 RLT 718 (CEGAT 3 member bench) * Telco v. CCE (2001) 136 ELT 305 (CEGAT) * Rathi Ispat v. CCE (2001) 136 ELT 1308 (CEGAT) * Sipta Coated Steel Ltd. v. CCE 1998(99) ELT 553 (CEGAT) * Asianol Lubricants v CCE (2007) 217 ELT 243 (CESTAT) * L&T Case Equipment v. CCE (2007) 208 ELT 218 (CESTAT SMB).
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