9911796707
TMI Blog2015 (12) TMI 662X X X X Extracts X X X X X X X X Extracts X X X X ..... ger bench of this Tribunal in Banco Products (India) Ltd. (2009 (2) TMI 101 - CESTAT AHMEDABAD) is squarely applicable in respect of CENVAT credit on the plastic crates. - trolley is specially designed to keep the machine parts which is used in the manufacture of their final products. The trolley is used as a material handling equipment within the factory during the process of manufacturing. The issue of eligibility to CENVAT credit on trolley has been dealt by the Tribunal in the case of Shinhan Plasto (I) Pvt. Ltd. (2008 (2) TMI 157 - CESTAT, CHENNAI) - trolley is used in or in relation to the manufacturing process of final products. Therefore, in my considered view, CENVAT credit on trolley is rightly available. - CENVAT credit in respec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missioner (Appeals) who upheld the demand of CENVAT credit of ₹ 2,66,025/-. However, reduced the penalty from ₹ 2,66,025/- to ₹ 1,62,962/- on the ground that the appellant reversed the CENVAT credit of ₹ 1,03,063/- relating to lamps and metal drawers and also paid interest for the said amount immediately after the audit team pointed out the wrong availment of input credit even before the issuance of show cause notice. Aggrieved by the Commissioner (Appeals); impugned order dated 30/12/2011, the appellant is before me. 3. Shri S. Narayanan, the learned counsel for the appellant submits that they are not contesting the credit of ₹ 1,03,063/- which was already reversed along with interest before issuance of sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmits that the Revenue has not produced any evidence that these goods are being used for the purpose other than the manufacturing process. He placed reliance on the following judgment which directly on the inputs in question. Welding table is exclusively used for the purpose of carrying out the process by the welder as such welding cannot be carried out without such table. The welding process of various components is a vital part of the process of entire manufacturing activity and therefore for that manufacturing activity, the welding table is used for the purpose of carrying out the welding. Therefore, it is used in the process of manufacturing. He placed reliance on the following judgments which directly on the input in question. (i) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r bench of this Tribunal in Banco Products (India) Ltd. (supra) is squarely applicable in respect of CENVAT credit on the plastic crates. The relevant portion of the judgment is extracted below: 24. We fully agree with the above judgment on the issue. The plastic crates are used for transporting/storing of the goods in the factory of production. Proper storage of inputs is essential for efficient manufacturing process and in absence of proper facilities for storage and transportation; the same will affect the manufacturing process. Further, the Honble Supreme Court in the case of M/s. Rajasthan State Chemical Works has observed that the manufacturing process starts with the drawing of water from the reservoir. By applying the same f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e no case that the material handing equipments (trolleys) were not used within the factory for the manufacture of final products. According to them, however, these equipments, having been classified under Heading 94.03 in the relevant invoices would not be eligible for capital goods credit. According to the assessee, these equipments were in fact classified under Heading 84.28 at the suppliers end and, therefore, the benefit of CENVAT credit of the duty paid on these goods is not to be denied to them on account of that the invoices did not mention the correct Tariff Heading. On a perusal of the rival Headings as given in the Tariff Schedule, I find that Heading 84.28 is the specific entry for material handling equipments like trolleys wher ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding table and welding chair. Therefore, these items are indeed used during the process of manufacturing, may be indirectly. Therefore, CENVAT credit on these items is admissible. In the case of Switch Gear Control Technics Pvt. Ltd. (supra), a coordinate bench of this Tribunal has allowed credit in respect of welding table. In view of this position, CENVAT credit in respect of welding table and welding chair, in my considered view, is rightly admissible. 10. In view of my above discussion, the appellant has correctly availed CENVAT credit in respect of plastic crates, trolleys, welding table and welding chair. I therefore, set aside the impugned order of the Commissioner (Appeals) and allow the appeal of the appellant with consequ ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
