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TMI Blog2012 (5) TMI 323X X X X Extracts X X X X X X X X Extracts X X X X ..... h tool kit and first aid kit in our view are squarely covered by the definition of input given under Section 2(k)(i) of Cenvat Credit Rules and that the appellant had rightly availed the cenvat credit in relation to tool kit and first aid kit. - Decided in favor of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... ued to the appellant. The appellant contested the show cause notice. However, the Commissioner (Adjudication) vide order in original disallowed the cenvat credit to the tune of Rs.50,65,946/- and ordered recovery of the aforesaid amount with interest and also imposed equal amount of penalty. This demand was confirmed in respect of the period 2009-10. 3. Shri R.K. Hasija, learned Counsel for the appellant has assailed the impugned order on the ground that the order has been passed ignoring the basic provisions of law. Expanding on argument, learned counsel for the appellant submitted that tool kits and first aid kits which were admittedly sold as accessories along with two wheelers fall within the ambit of the definition of input as given ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat tool kit and first aid kit are not accessories as envisaged under Rule 57A of Central Excise Rules, 1944 or Rule 2(k)(i) of Cenvat Credit Rules, 2002 as the aforesaid kits are bought out items which are neither fitted with motorcycle/two wheelers nor are used in or in relation to the manufacture of motorcycles by the appellant. Thus it is contended that the adjudicating authority has rightly disallowed the cenvat credit availed in respect of tool kit and first aid kit as inputs and confirmed the duty demand against the appellant. Shri Pathak has thus urged for dismissal of the appeal. 6. We have considered the rival contentions and perused the record. The issue for determination in this appeal is whether or not the tool kit and first ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (i) of Cenvat Credit Rules, 2004? 10. Undisputedly, the tool kit and first aid kit are sold by the appellant along with final product and their cost is included in the same. 11. Rule 138 of Central Motor Vehicle Rules, 1989 as amended upto date deals with signals and additional safety measures for motor vehicle. Clause 4(b) of Rule 138 makes it incumbent on driver of every vehicle to carry the tool kit prescribed by the manufacturer. Sub-clause 4(d) of Rule 138 makes it incumbent on driver of the vehicle to carry first aid kit containing a tube of antiseptic cream containing 0.5% of Centrimide BP, in anon-greasy base, sterilized dressings, sterilized elastic plaster, waterproof plaster, gauze and elastic bandage for wounds and burns. Si ..... X X X X Extracts X X X X X X X X Extracts X X X X
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