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TMI Blog2006 (1) TMI 487X X X X Extracts X X X X X X X X Extracts X X X X ..... inputs . The original authority disallowed the credit, holding that the said items did not fit into the definition of inputs . Ld. Commissioner (Appeals) took the view that the definition of input was wide enough to cover the above items and, accordingly, allowed the credit. Hence the Revenue s appeal. For the period June-September 2003, Cenvat credit of Rs. 6004/- taken by M/s. Pricol on plastic crates and P.P. Sheet trays was also allowed by the Commissioner (Appeals). This time, however, the appellate authority considered the above items as capital goods . The party has filed appeal No. E/332/2005 for holding that the crates and trays are inputs and not capital goods . 2. After examining the records and hearing both sides, I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ive list, which reads as under : (i) all goods falling under Chapter 82, Chapter 84, Chapter 85, Chapter 90, heading No. 68.02 and sub-heading No. 6801.10 of the First Schedule to the Tariff Act; (i) Components, spares and accessories of the goods specified at (i) above ; (ii) moulds and dies; (iii) refractories and refractory materials; (iv) tubes and pipes and fitting thereof; (v) pollution control equipment; and (vi) storage tank. used in the factory of the manufacturers of the final products, but does not include any equipment or appliance used in an office. 5. The plastic crates under consideration are falling under S.H. 3923.90 of the CETA Schedule and the same are not covered under Sl.No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... substantially used-up by the time the output emerges. The plastic crates used by the respondents as material handling equipment can hardly be treated as inputs as the definition of input under Rule 2 of the Cenvat Credit Rules, 2001/2002 cannot be extended so as to encompass the goods which are conventionally regarded as capital goods. There is a clear dividing line between the two and this aspect was not subject matter of J.K.Cotton Spinning and Weaving Mills (supra). 4. The decisions cited by ld. Counsel are not persuasive enough to take a different view on the question under consideration. In the case of Cominco Binani Zinc Ltd v. CCE, 1990 (48) E.L.T. 283 (Tribunal), aluminium sheets used as cathodes in the electrolytic process of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ible or commercially inexpedient, that process is one in relation to the manufacture Their lordships were considering the scope of the expression in relation to the manufacture in the above case. They were considering an essentially chemical process consisting of numerous steps/stages. It was held that, where any particular step was so integrally connected with the ultimate production of goods, such step could be regarded as in relation to the manufacture . In the instant case, M/s. Pricol have not cited any particular process or step involving the crates trays , integrally connected with the ultimate production of their final products. They were using the crates and trays only for handling materials within their factory ..... X X X X Extracts X X X X X X X X Extracts X X X X
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