9911796707
TMI Blog2023 (9) TMI 292X X X X Extracts X X X X X X X X Extracts X X X X ..... duty on the final products - as per the Motor Vehicle Act, it is a statutory obligation of the manufacturers of two wheelers to clear the motor cycle from the factory with mirror assembly (right left) and sari guard. The impugned order is not sustainable in law and is set aside - appeal allowed. - HON BLE Mr. S. S. GARG, MEMBER (JUDICIAL) And HON BLE Mr. P. ANJANI KUMAR, MEMBER (TECHNICAL) Shri Srinivas Kotni, Shri Akshay Kumar, Advocate for the Appellant Shri Siddharth Jaiswal, Ms. Shivani, Departmental Representative for the Respondent ORDER Per : S. S. GARG These two appeals are directed against the common impugned order No. OIO-13-14/SSS/CCE/2012 dated 10.04.2012 passed by the Commissioner of Central Excise, Delhi-III wherein the recovery of cenvat credit was ordered under the provision of Rule 14 of Cenvat Credit Rules, 2004 read with Section 11A(1) of the Central Excise Act, 1944 along with interest and equal penalty under Rule 15 of the Cenvat Credit Rules, 2004 and Rule 25 of Central Excise Rules, 2002. 2. Briefly the facts of the case are that the appellant during the period of dispute was engaged in the manufacture and clearance of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y by dropping the penalties initiated vide the show cause notice. 5.5. Ld. Counsel has placed on record the decisions given by the department in their own case cited (supra). He further submitted that on merit also, the appellant s case is covered as the Mirror Assembly (left right) and Sari Guard come under the ambit of definition of Input under Rule 2(k) of the Cenvat Credit Rules. 5.6 Ld. Counsel took us through the definition of input as defined under Rule 2(k) and submitted that mirror assembly (right left) and sari guard being accessories to the final product qualifies under the definition of input. He further submitted that mirror assembly and sari guard are the goods which are bought out items (on which applicable duty is paid at the time of purchase) and the same are cleared along with the motorcycle from the factory by paying excise duty on the final products. He further submitted as per the definition of input, an input need not be contained in the final product and an input includes accessories of the final product. 5.7 He further submitted that vide Notification No. 03/2011-Central Excise (N.T.) dated 01.03.2011 (effective from 01.04.2011) the definition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se duty by utilizing the same towards payment of excise duty on goods manufactured by them. 7. We have considered the rival contentions of both the parties and perused the records. The issue for determination in these two appeals is whether or not the mirror assembly (right left) and sari guard undisputedly sold by the appellant alongwith Motor Cycle fall within the purview of the definition of Input eligible for cenvat credit under Rule 2(k) of the Cenvat Credit Rules, 2004. 7.1 In order to decide this issue, it is necessary to have a look at the relevant Cenvat Credit Rules, 2004. Rule 3 of the Cenvat Credit Rules provides that a manufacturer or producer of the final product shall be allowed to take cenvat credit on the excise duty or additional excise duty paid on any input or capital goods received in the factory for manufacture of final products. The definition of input as provided under Rule 2(k) during the relevant period is reproduced herein below:- all goods, except light diesel oil, high speed diesel oil and motor spirit, commonly known as petrol used in or in relation to the manufacture of final products whether directly or indirectly and whether containe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The only issue involved in this case in admissibility (or otherwise) of Cenvat Credit of duty paid on Sari Guard and Mirror assembly supplied by the appellants alongwith motor cycles and the value of which is included in the value of the motorcycle. The adjudicating authority vide Order-in-Original No. 31/SSS/CE/2011 dated 29.12.2011 has held such credit to be inadmissible and as a result disallowed credit amounting to Rs. 24,26,09,869/- ordering recovery thereof alongwith interest and mandatory, equal penalty. 2. Vide an inter parties order No. F/54214 dated 17.10.2014 CESTAT has held such Cenvat Credit to be admissible. Following the precedent and for reason alike, we allow the appeal and set aside the impugned Order-in-Original. 7.4. Further, we find that in the appellant s own case, the Ld. Commissioner of Central Excise-Delhi-III vide Order-in-Original No. 53-55/ SA/ CCE/2012 dated 21.08.2012 has also allowed the Cenvat credit of duty paid on Sari Guard and Mirror Assembly and the relevant findings are reproduced herein below:- 58. I find that the Mirror assembly which is a duty paid bought item is cleared along with Motorcycle and to qualify as an input' a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
