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TMI Blog2016 (3) TMI 992X X X X Extracts X X X X X X X X Extracts X X X X ..... pter Heading No. 73130010 of CETA supplied by M/s. Reliance Wire Products, Atgaon, Thane. The barbed wire is a bought-out item and supplied in the same form to their buyers as it is and neither any process on such barbed wire is carried out in the assessee's factory nor the barbed wire is used in the factory. The barbed wire is used for fencing the lower part of the transmission line tower after erection of the same at site to discourage general public to climb such transmission tower. The barbed wire is nothing but used for safety and security of the transmission tower and has nothing to do with the functioning of the tower. It has further been alleged that the respondent in most of the cases, except M/s. Powergrid Corporation of India Ltd., does not supply the barbed wire for sale / erection of transmission line tower. Separate invoice is prepared for clearance of such barbed wire from the factory of the assessee and cleared separately from the factory. During the period from June 2004 to March 2009, the assessee had availed cenvat credit of duty on such barbed wire to the tune of Rs. 18,67,656/-. The barbed wire supplied to the buyer by the assessee does not qualify as input ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmitted that the decisions relied upon by the Commissioner (Appeals) are not applicable to the instant case in view of the following cases:- (i) NGEF Ltd. vs. CCE, Bangalore reported in 1995 (77) ELT 238 (T); (ii) CCE, Chennai vs. Sundaram Brake Linings reported in 2010 (19) STR 172 (T). 4. On the other hand, the learned counsel for the respondent submitted that barbed wire is an accessory of the tower and therefore the same is cleared along with the final product and has to be regarded as input. Thereafter, the learned counsel referred to the various definitions of the word "accessories"and the meaning assigned to it by various judicial pronouncements and a gist of which is as under:- (a) An object or device that is not essential in itself but that adds to the beauty, convenience or effectiveness of something else; (b) An extra piece of equipment useful but not essential or that can be added to something else as a decoration; (c) Accessories means items which enhance the functioning and operation of the main goods whether it is plant, machinery of equipment. 4.1 He further submitted that barbed wire is an anti-climbing device and the same is highly useful in protect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lue. On this aspect, the respondent relied upon the following judgments:- (i) CCE, Aurangabad vs. Somaiya Organo Chem reported in 2007 (213) ELT 130 (T); (ii) New Chemi Industries Ltd. vs. CCE, Daman reported in 2008 (230) ELT 505 (T); (iii) CCE vs. Textile Corpn. Marathwada Ltd. reported in 2008 (231) ELT 195 (SC). 4.3 He further submitted the following judgments to support his argument that penalty should not be levied when the issue involved is interpretation of statutory provisions:- (i) Sona Wires Pvt. Ltd. vs. CCE, Raipur reported in 1996 (87) ELT 439 (T); (ii) Aquamall Water Solutions Ltd. vs. CCE, Bangalore reported in 2003 (153) ELT 428 (T). 5. I have heard the learned counsel for the parties and perused the material record. 6. The only question to be decided by me in this case is whether the respondent is entitled to claim cenvat credit on barbed wire being accessory to the transmission tower and whether the said accessory falls in the definition of 'input' as contained in Section 2(k) of the Cenvat Credit Rules, 2004. Here it is necessary to reproduce the definition of 'input' as contained in Rule 2(k):- "2(k) "input"means- (i) all goods, exc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e or comfort for the use of the motor vehicle or a supplementary or secondary to the main or primary importance. Whether an article or part is an accessory cannot be decided with reference to its necessity to its effective use of the vehicle as a whole. General adaptability may be relevant but may not by itself be conclusive. Take for instance Stereo or Air-conditioner designed and manufactured for fitment in a motor car. It would not be absolutely necessary or generally adapted. But when they are fitted to the vehicle, undoubtedly it would add comfort or enjoyment in the use of the vehicle. Another test may be whether a particular article or articles or parts, can be said to be available for sale in an automobile market or shops or places of manufacture;if the dealer says it to be available certainly such an article or art would be manufactured or kept for sale only as an accessory for the use in the motor vehicle. Of course, this may not also be a conclusive test but it is given only by way of illustration. Undoubtedly some of the parts like axle, steering, tyres, battery etc. are absolutely necessary accessories for the effective use of the motor vehicle. If the test that each a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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