TMI Blog2012 (12) TMI 940X X X X Extracts X X X X X X X X Extracts X X X X ..... d. In my prima facie view, the expression “in or in relation to the manufacture of final product, whether directly, or indirectly, whether contained in final product or not,” in the definition of ‘input’ is very wide and would cover, in addition to the items which are directly used in the manufacture of final product, the items which are indirectly used - impugned order denying the Cenvat credit in respect of this item is not correct and as such the appellant have prima facie case in their favour. The requirement of pre-deposit of Cenvat credit demand, interest and penalty is, therefore, waived for hearing of the appeal and recovery thereof is stayed till the disposal of the appeal - Stay granted. - E/3870/2012 - Stay Order No. SO/55287/20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 2,85,158/- along with interest and imposed penalty under Rule 15 of the Cenvat Credit Rules. This order of the Asstt. Commissioner was upheld by the Commissioner (Appeals) vide order-in-appeal dated 14-9-2012. 2. Heard both the sides in respect of stay application. 3. Shri B.L. Narasimhan, Advocate, the ld. Counsel for the appellant, pleads that it is undisputed that Ring Rim is an essential item for testing of the tyres, that testing of tyres is necessary before its clearance for home consumption or for export, and thus testing is part of the manufacturing process, that even if this item is not covered by the definition of capital goods, the same would be covered by the definition of input , which covers items used in or in rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t every tyre prior to its clearance is required to be subjected to inflated dimension test for which Ring Rim is used. In view of this, I am of the prima facie view that Ring Rim is an item which is required in or in relation to the manufacture of rubber tyre, as a tyre without being tested cannot be marketed. In my prima facie view, the expression in or in relation to the manufacture of final product, whether directly, or indirectly, whether contained in final product or not, in the definition of input is very wide and would cover, in addition to the items which are directly used in the manufacture of final product, the items which are indirectly used. As held by Hon ble Calcutta High Court in the case of Singh Alloys (supra), the expr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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