TMI Blog2014 (4) TMI 299X X X X Extracts X X X X X X X X Extracts X X X X ..... the functioning of the tyres more convenient and trouble free. Therefore, while tubes can as well find place as part of component of tyre, the flap will clearly be an accessory - appellant’s claim of reversal of Cenvat credit at the time of clearance would amount to reversal of Cenvat credit availed on the tubes and flaps also is also valid - Following decision of Balakrishna Industries Ltd. vs. Commissioner of Central Excise, Jaipur-I [2007 (6) TMI 85 - CESTAT, NEW DELHI] - Decided in favour of assessee. - E/263, 264 & 265/2009-DB - Final Order No. 20422-20424/2014 - Dated:- 28-3-2014 - SHRI B.S.V.MURTHY AND SHRI S.K. MOHANTY, JJ. For the Appellant : Mr. Joseph Kodianthara, Sr. Adv. For the Respondent : Mr. A.K. Nigam, A. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idered as inputs at all. On appeal filed by the appellant, Hon ble Supreme Court has stayed only this conclusion of Hon ble High Court that tubes and flaps cannot be considered as inputs at all. The issue relates to differential duty is still pending before the apex court. 2. In the present case, proceedings have been initiated on the ground that the tubes and flaps sold along with tyres in the replacement market cannot be considered as inputs at all. Therefore, the Cenvat credit availed on all the tubes and flaps sold along with tyres in the replacement market has been required to be reversed with interest and penalty has also been imposed. 3. Learned counsel also submits that both the impugned orders in respect of Trichur unit as we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellants are eligible for the benefit. 4. Learned counsel also submitted that Cenvat credit reversal could not have been required in view of the fact that in all the cases of such clearances of tubes and flaps, value adopted for tubes and flaps are higher than the purchase value and therefore, Cenvat credit availed was always less than the difference payable and therefore, it can be said that entire amount of Cenvat credit required to be reversed in the show-cause notice and in the order-in-original have already been paid at the time of clearance of the tubes and flaps with tyres. This submission has not been considered. 5. Even though learned A.R. submitted that in view of the fact that the decision of Hon ble High Court taking a view ..... X X X X Extracts X X X X X X X X Extracts X X X X
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