2006 (12) TMI 15 - AT - Central Excise

Cenvat/ Modvat- Jack and tool kit for motors cars includible in the value of car- Department of the view that they were not inputs eligible for credit of duty of cars inspite of their supply being mandatory found to be correct as C.E.L

Summary

Issues: Appeal against Commissioner (Appeals) order setting aside original authority's decision on duty recovery proceedings.

Analysis:
1. Facts Overview:
- The appellant, a motor car manufacturer, sells cars in different states with varying requirements regarding supplying tool-kit and jack assembly.
- The department contends that these items are not eligible for credit under Rule 57A.

2. Appellant's Argument:
- The appellant argues that in Maharashtra, the items are mandatory with car sales, making them part of the vehicle's value and thus eligible as inputs.

3. Department's Argument:
- The Department asserts that Central Excise Law applies uniformly across India, regardless of state-specific requirements.
- Refers to previous Tribunal judgments to support the stance.

4. Judgment Analysis:
- The Tribunal emphasizes that Central Excise Law is consistent nationwide and cannot be altered to accommodate state laws.
- Upholds the Commissioner (Appeals) decision that tool-kit and jack assembly are not considered inputs for credit eligibility.

5. Conclusion:
- The appeal is dismissed, affirming the decision on the eligibility of tool-kit and jack assembly as inputs.