9911796707
TMI Blog2010 (9) TMI 439X X X X Extracts X X X X X X X X Extracts X X X X ..... running of machinery, by repeatedly painting them and the floor required for smooth movement of raw materials, semi-finished goods and final product by making floor dust-free, has nexus with the manufacture of final product - The appellants are entitled for the benefit of Modvat Credit – Hence appeal is allowed. - E/590 OF 2010 - A/1438/WZB/AHD./2010 - Dated:- 9-9-2010 - MRS. ARCHANA WADHWA, JJ. ORDER 1. The appellants are engaged in manufacture of Bearing Cages falling under Chapter 84 of Central Excise Tariff Act, 1985 and were availing facility of Cenvat Credit of duty paid on the input. During the period January 2008, they availed Modvat Credit of Rs. 2,30,841 in respect of paint utilized for painting the machinery and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... question whereof availed Cenvat Credit is not an ordinary decorative paint, but it is Epoxy Paint. Epoxy paint is a special category of paint, which is used for industrial purposes, in order to provide specific coating on the articles on which it is applied for protection of such article and when it is applied on floor, to make floor dust free and for easy movement of the inputs, semi-finished goods and material handling equipments. (iii) They relied upon the following judgments passed by the various appellate authorities: (a) CCE v. Nagarjuna Agrichem Ltd. 2003 (160) ELT 572 (Trib. - Bang.) (b) Ruchi Health Foods Ltd. v. CCE 2007 (218) ELT 716 (Trib. - Chennai) (c) CCE v. Thirumalai Chemicals 2008 (227) ELT 592 (Trib. - Che ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of the manufacturer. 7. The Commissioner (Appeals) has observed as under: On plain reading of inputs definition, goods used as paint is eligible input for Cenvat Credit. In other words, the paint used on the final products are covered as input for availing Cenvat Credit. I find that the appellant has not used the paint on final products manufactured and cleared. Therefore, they are not entitled for the Cenvat Credit and the same is wrongly availed. The various case laws relied upon are of no help as the facts and circumstances are not same to the present case. Therefore, I see no reason to interfere with the impugned order. 8. As is clear from the above, the appellate authority has entertained a view that the paint is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods used as paint used in the manufacture of final product or within the factory of production for any other purpose. 11. The ratio of the law that paint is to be used as eligible modvatable input as long as same is used in or in relation to manufacture of final product, as held in number of decisions. The expression used in or in relation to manufacture of final product appearing in the definition of input is wide enough to take into its ambit input which are used in relation to the manufacture of final product . The definition further is to the effect that such inputs may be used directly or indirectly or may be contained in the final product or not. As such, for the goods to be qualified as input, it is not necessary that they mus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the said item which would constitute the relevant consideration. Unless and until the said input is used in or in relation to manufacture of final product, within the factory of production, the said item would not become eligible input. 13. Viewing the use of paint in the appellant s factory in the light of the observations made by Hon ble Supreme Court, I find that the issue to be addressed is as to whether the use of the paint is in or in relation to manufacture of final product or not. Admittedly, if paint is not used in relation to manufacture of final product, same would not become an input merely because the same is mentioned in the inclusive part of the definition. Hon ble Supreme Court in the above judgment has referred to oil ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
