TMI Blog2006 (10) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... 12-2001 and Rs. 57,232/- under show cause notice dated 23-12-2002 were dropped against the appellant, by holding that Modvat credit taken by the appellant on first-aid-kit/box in the vehicle manufactured and removed by them was not permissible. 2.The appellant was engaged in the manufacture of motor vehicles falling under chapter 87 of the schedule to the Central Excise Tariff Act, 1885 and was availing Cenvat facility under the Rule 57AB of the Central Excise Rules, 1944/Rule 3 of Cenvat Credit Rules, 2001/Rule 3 of Cenvat Credit Rules, 2002. During scrutiny of the records of the assessee, it was observed that, it had taken Cenvat credit on first-aid kit/box of Rs. 70,268/- during the period from December 2000 to October 2001 and Rs. 57 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... procured even from outside for compliance of the provision of Rule 180 of those rules. It was held that rule 180 of M.P. Motor Vehicle Rules, 1994 applied to stage carriage and public service vehicle and these may not be applicable to the vehicle carrying goods. It was held that even though the value of first-aid box/kit was included in the value of the vehicle cleared by the assessee, the credit of duty paid on such first-aid box/kit would not be available to the assessee as, such first-aid box/kit cannot be considered as an "input" for the manufacture of the vehicle during the relevant period. 3.The appellant had filed notes on 7-9-2006 and 27-9-2006 making written submissions and requesting to decide the appeal on merits on their basi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ., reported as 2006 (197) E.L.T. A84 (S.C.) confirming the order of the Tribunal in which it was held that clock assembly fitted in the export and deluxe vehicles were essential components for making the final product, hence were "input". It is submitted that the motor vehicles not fitted with the first-aid box were not marketable in view of the provision of the Motor Vehicles Act. 5.There is no dispute over the fact that value of the first-aid box/kit was included in the value of the vehicles, when the vehicles were cleared by the appellant on payment of duty. The relevant period under consideration covered by the two show cause notices was from December 2000 to October 2001 and December 2001 to October 2002. 5.Under Rule 57A(1) read ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Explanation 1 - The high speed diesel oil or motor spirit, commonly known as petrol, shall not be treated as an input for any purpose whatsoever. Explanation 2 - Inputs include goods used in the manufacture of capital goods which are further used in the factory of the manufacture." 5.2 Thereafter, for the period 1st July 2001 to October 2002, the word 'input' was defined in Rule 2(f) of the Cenvat Credit Rules 2001 as under :- "Input means all goods, except high speed diesel oil and motor spirit commonly known as petrol, used in or in relation to manufacture of final products, whether directly or indirectly and whether contained in the final product or not, and includes lubricating oils, greases, cutting oils, coolants, accessories of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant-manufacturer was motor vehicle falling under chapter 87 of the schedule to the Central Excise Tariff Act, 1985. Under chapter heading 8708, there is a reference to parts and accessories of motor vehicles of heading 8701 to 8705. There is no specific reference to first-aid box/kit as an accessory but there are residuary entries under which the item can fall if it is to be treated as an accessory of a motor vehicle. 7.It is not necessary for the purpose of considering eligibility to avail Modvat credit that the manufacturer must be under an obligation to supply the accessory alongwith the vehicle. A manufacturer may choose to supply certain accessories along with the vehicle manufactured while another manufacturer may not supply t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riving of motor vehicles provides under sub-heading "K. FIRST-AID" for the following topic : "K. FIRST-AID 1. Introduction to first-aid. 2. Outline of first-aid. 3. Structure and functions of the body. 4. Dressings and bandages. 5. The circulation of the blood. 6. Wounds and haemorrhage. 7. Haemorrhage from special regions. 8. Shock. 9. Respiration. 10. Injuries to bones. 11. Burning scales. 12. Unconsciousness (insensibility). 13. Poisons". 7.2 Even the applicants for motor driving schools and establishments contemplated under Rule 24 are required to maintain apparatus, equipments and requirements including a fully equipped first-aid box for use in emerg ..... X X X X Extracts X X X X X X X X Extracts X X X X
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