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TMI Blog2013 (3) TMI 343X X X X Extracts X X X X X X X X Extracts X X X X ..... der the definition of Input under Section 2(k) of the Cenvat Credit Rules, 2004. As Punjab & Haryana High Court has directed all the manufacturers/ dealers in the states of Punjab, Haryana and U.T. of Chandigarh to provide Helmet and Lock for it to the ultimate consumer at the time of sale of two wheeler. From this also prima-facie it appears that the appellant was under legal obligation to provide duly fitted Helmet Lock in the motorcycle cleared to the ultimate customer as such Helmet Lock is an accessory of the motorcycle and covered under the definition of Input. Thus, prima-facie the appellant has rightly availed the Cenvat credit disallowed to him vide impugned order. The appellant has been able to make out a prima-facie case f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hin the definition of Input as defined under Rule 2(k) of the Cenvat Credit Rules. Accordingly, a show cause notice proposing to disallow the Cenvat credit availed by the appellant was issued wherein it was proposed to recover the wrongly availed Cenvat credit and also to impose penalty. The jurisdictional Commissioner vide impugned order adjudicated the show cause notice and confirmed the demand raised therein. He also imposed equal amount of penalty on the appellant. 5. The only question which require determination is whether or not helmet lock duly fitted and cleared alongwith the motorcycle falls within the definition of Input to justify the Cenvat credit claimed by the appellant. 6. Shri S. Ganesh, Sr. Advocate appearing for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has contended that Helmet Lock cannot be termed as an accessory to the motorcycle as it has no correlation to function as utility of motorcycle. Otherwise also to have a Helmet Lock fitted to the Motorcycle is not mandatory but optional for the consumer. Thus, it is contended that Cenvat credit has been rightly disallowed by the Commissioner Adjudication and there is no reason for waiver of condition of pre-deposit. 8. We have considered the rival contention and perused the record. The appellant has placed on record copy of the direction of Punjab Haryana High Court in Civil Writ Petition No. 7639/95, dated 13-9-2000 whereby Hon ble High Court directed thus :- The larger public interest will be served and Court directions would be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in or in relation to manufacture of final products or for any other purpose, within the factory of production; 10. On reading of the above, it is evident that subject to the exception given in the definition reproduced above input means the goods used in or in relation to the manufacture of final product and includes accessories of the final products cleared alongwith the same. Case of the assessee is that as per the Board Circular it is apparent that Helmet Lock is an accessory of the motorcycle as such the Helmet Lock duly fitted and cleared alongwith motorcycle would be covered under the definition of input. In order to appreciate this contention it would be useful to have a look on Board Circular No. 24/90-CX.4, dated 11-7-1990 whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the manufacturers/ dealers in the states of Punjab, Haryana and U.T. of Chandigarh to provide Helmet and Lock for it to the ultimate consumer at the time of sale of two wheeler. From this also prima-facie it appears that the appellant was under legal obligation to provide duly fitted Helmet Lock in the motorcycle cleared to the ultimate customer as such Helmet Lock in our prima-facie view is an accessory of the motorcycle and covered under the definition of Input. Thus, prima-facie the appellant has rightly availed the Cenvat credit disallowed to him vide impugned order. 12. In view of the discussion above, we are of the opinion that the appellant has been able to make out a prima-facie case for waiver of pre-deposit of duty demand, inte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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