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TMI Blog2013 (3) TMI 345X X X X Extracts X X X X X X X X Extracts X X X X ..... s is essential for efficient manufacturing process and in absence of proper facilities for storage and transportation; the same will affect the manufacturing process, therefore crates used for transportation of finished goods in to bonded store room, are eligible for credit as input. As against the above judgment of the Larger Bench of the Tribunal, no appeal has been preferred by the Department and it is submitted that the Department has accepted the said judgment and acted upon the same - in favour of assessee. - C.M.A.NO.4162 OF 2005 - - - Dated:- 14-2-2013 - R. Banumathi And K. Ravichandra Baabu,JJ. For Appellant : Mr.Mohammed Shafiq for M/s.R.Karthikeyan For Respondents : Mr.Vikram Ramakrishnan JUDGMENT Whether 'P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rity held that the "Plastic Crates" plays no role to the manufacturing and cannot be treated as eligible "capital goods" and that the function of the 'Plastic Crates' is as carriers of cops from one Department to another and 'Plastic Crates' cannot be treated as 'accessories' as claimed by the assessee. By Order dated 5.8.2003, the adjudicating authority disallowed the credit of Rs.20,800/- and imposed penalty of Rs.10,000/- under Rule 13 of Cenvat Credit Rules, 2001/2002. 4. The appeal preferred by the appellant was allowed by the Appellate Authority holding that the Plastic Crates have an individual role in the manufacture of finished excisable goods and is an essential input/goods. The scope and ambit of definition of "input" is very w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the count that the same was not raised before the lower authorities when the law on this aspect by the following rulings have laid the law that a benefit of a plea even if not specifically claimed by the assessee should not be denied if they are otherwise entitled to it and the right of the assessee is not restricted to the plea raised by them?" 7. Learned counsel for appellant submitted that the question whether credit is admissible on 'Plastic Crates' used as material handling device was considered by the Larger Bench of the Tribunal of Ahmedabad in 2009. The learned counsel submitted that the Larger Bench of the Tribunal in the said case of BANGO PRODUCTS (INDIA) LTD. VS. COMMISSIONER OF C. EX., VADODARA-1 (2009 (235) E.L.T. 636 (Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... king of that machine. The plastic crates in question are used for transportation of the raw material to the processing machine and all the finished goods from the machine to the storage area. It can be argued that instead of using such plastic crates as material handling device, the various components or the inputs can be carried manually also. However, the question is as to whether such transportation of the inputs or semi-finished goods in the factory would be convenient way of dealing, and whether the same would not hamper the continuous working of the machine on account of delays in the delivery of the raw material etc., It may be possible in theory to do so, but is neither practical nor possible to do so in the actual manner. The deliv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... livery of the goods includes transportation of the goods by plastic crates. Similarly, finished products required to be stored in a bonded store room. The plastic crates are again sued for such transportation. As such, we are of the view that the plastic crates would also be eligible for modvat credit as input." 8. Mr.Vikram Ramakrishnan, learned counsel for the first respondent/Revenue submitted that as against the above judgment of the Larger Bench of the Tribunal, no appeal has been preferred by the Department and it is submitted that the Department has accepted the said judgment and acted upon the same. 9. Since the issue is covered by the judgment in BANGO PRODUCTS (INDIA) LTD. VS. COMMISSIONER OF C. EX., VADODARA-1 (2009 (235) E.L ..... X X X X Extracts X X X X X X X X Extracts X X X X
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