9911796707
TMI Blog2006 (10) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... cords of the assessee, it was observed that, it had taken Cenvat credit on first-aid kit/box of Rs. 70,268/- during the period from December 2000 to October 2001 and Rs. 57,232/- during the period December 2001 to October 2002. According to the Revenue, since the first-aid kit/box was not used in or in relation to manufacture of vehicle directly or indirectly and was provided alongwith the vehicle as an additional kit for first-aid purpose, the availment of cenvat credit in respect thereof was not admissible, because it did not fall under the definition of "input". Two show cause notices were therefore issued in respect of the said two periods, and on the basis of the material on record, the Assistant Commissioner held that the first-aid box was used in relation to the manufacture of the vehicle because in Rule 180 of the M.P. Motor Vehicle Rules, 1994, there was a provision to the effect that every "stage carriage" shall carry a dust proof first-aid box. It was held that considering the statutory requirement enforced by the State Government, first-aid kit box was used in relation to the manufacture of motor vehicle and hence was "input" as contemplated in Rule 57AA(d) of the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 258. (iii) Tata Engineering & Locomotive Company Ltd. v. State of Bihar reported in 1994 (74) E.L.T. 193. 4.In their written submissions filed with the note dated 27-9-2006, after referring to the written submissions filed earlier on 7-9-2006, the appellant have relied upon the decision of the Hon'ble Supreme Court in Commissioner v. Maruti Udyog Ltd., reported as 2006 (197) E.L.T. A84 (S.C.) confirming the order of the Tribunal in which it was held that clock assembly fitted in the export and deluxe vehicles were essential components for making the final product, hence were "input". It is submitted that the motor vehicles not fitted with the first-aid box were not marketable in view of the provision of the Motor Vehicles Act. 5.There is no dispute over the fact that value of the first-aid box/kit was included in the value of the vehicles, when the vehicles were cleared by the appellant on payment of duty. The relevant period under consideration covered by the two show cause notices was from December 2000 to October 2001 and December 2001 to October 2002. 5.Under Rule 57A(1) read with explanation (e) which was inserted w.e.f. 29-6-95 "inputs" included accesso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e factory of production". (emphasis added). The definition remains the same under Rule 2(g) of Cenvat Credit Rules, 2002. 5.3It will be seen from the definitions of "input" applicable at the relevant time that accessories of the final products cleared alongwith the final product were included in the definition of input for the purpose of availing Modvat/Cenvat credit under the scheme. 6.The short question that arises for consideration is whether first-aid kit/box should be treated as an accessory of the final product namely, motor vehicle since it was cleared alongwith the final product and therefore be considered as "input" for the purpose of admissibility of the Modvat/cenvat credit. The word "accessory" has a much wider connotation than the word "part" in relation to manufacture of final product. Accessories would not be contained in the final product, yet they would be for use in relation to the manufacture of the final products directly or indirectly. The rules do not provide any catalogue of accessories and therefore, the meaning of the word "accessories" may be understood in relation to the nature of the final product manufactured and the type of accessories in relation t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opic : "K. FIRST-AID 1. Introduction to first-aid. 2. Outline of first-aid. 3. Structure and functions of the body. 4. Dressings and bandages. 5. The circulation of the blood. 6. Wounds and haemorrhage. 7. Haemorrhage from special regions. 8. Shock. 9. Respiration. 10. Injuries to bones. 11. Burning scales. 12. Unconsciousness (insensibility). 13. Poisons". 7.2 Even the applicants for motor driving schools and establishments contemplated under Rule 24 are required to maintain apparatus, equipments and requirements including a fully equipped first-aid box for use in emergency at the premises under sub-rule (3)(vi)(n) of the Rule. In short, the Act and the roles made thereunder consider the first-aid treatment of persons injured in the motor vehicle to be of utmost importance. The State Governments have framed rules requiring motor v ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
