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TMI Blog2021 (7) TMI 300X X X X Extracts X X X X X X X X Extracts X X X X ..... ufacture and clearance of toilet soaps, washing soaps and toilet preparations under different brand names falling under Chapter 34 of Central Excise Tariff Act, 1985. The assesse had availed cenvat credit on household plastic buckets and plastic containers falling under CETH 3924 amounting to Rs. 6,83,032/- and utilized the same for payment of central excise duty. It appears that the plastic household buckets and kitchen containers will not be considered as inputs as they were neither used in the factory for the manufacture of final products nor were they accessories to their final products. Hence a show-cause notice was issued to the appellant proposing to deny the cenvat credit wrongly availed along with interest under Section 11AA of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd he relied upon the following decisions:- i. Manik Machinery Manufacturers Pvt. Ltd. Vs. CCE [2016(339) ELT 334 (Tri. Mum.)] ii. Cadbury India Ltd. Vs. CCE [2017(4) TMI 1215 -CESTAT Mumbai] 4.2. He further submitted that the decision of JK Cotton Spinning & Weaving Mills Co. Ltd. Case relied upon in the impugned order is not applicable to the facts of the present case as the same was rendered with respect to Rule 57A and 57Q of CCR, 1944 whereas the issue in this case is under CCR, 2004. He also submitted that the decision in the case of Jay Engineering Works Ltd. is also not applicable to the facts in the present case as the said decision was rendered with respect to set off of duty under Notification No.201/1979-CE and has nothing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irectly and whether contained in the final product or not and includes lubricating oils, greases, cutting oils, coolants, accessories of the final products cleared along with the final product, goods used as paint, or as packing material, or as fuel, or for generation of electricity or steam used in or in relation to manufacture of final products or for any other purpose, within the factory of production; (ii) all goods, except light diesel oil, high speed diesel oil, motor spirit, commonly known as petrol and motor vehicles, used for providing any output service. Explanation 1. - The light diesel oil, high speed diesel oil or motor spirit, commonly known as petrol, shall not be treated as an input for any purpose whatsoever. Explana ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urther I find that this issue has been settled by the Tribunal in favour of the assesse in the case of Manik Machinery Manufacturers Pvt. Ltd. cited above. The CESTAT, Mumbai has held in para 6 as under: 6. I find that the whole concept of Modvat/Cenvat scheme to avoid cascading effect of tax suffered on input. In that stream whatever input is going into final product either directly or indirectly, duty suffered on that input should be set off and only on value addition duty is levied. In the present case the playing cards even though it does not participate directly in the manufacture of final product i.e. spray guns but undisputedly the same is purchased by the appellant and expenditure of the same stands absorbed in the cost of the fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollowing the Hon'ble Gujarat High Court judgment, I am of the considered view that Cenvat credit in respect playing cards supplied by the appellant along with spray guns is admissible. The impugned order is set aside. Appeal is allowed.
7. Further in the case of Cadbury India Ltd. cited supra, the Tribunal has reiterated the decision of of Manik Machinery Manufacturers Pvt. Ltd. case and has held that the assesse is entitled to cenvat credit on free goods given along with other goods. Hence by following the ratio of the above said decisions, I am of the considered opinion that the impugned order is not sustainable in law and I set aside the same by allowing the appeal of the appellant.
(Order was pronounced in Open Court on 07/07/2021) X X X X Extracts X X X X X X X X Extracts X X X X
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