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2013 (1) TMI 529 - AT - Central ExciseWhether tool kit can be termed as accessories of final product as envisaged in the definition of ‘input’ in Rule 2(k)(i) of Cenvat Credit Rules, 2004 - Appellants are engaged in the manufacture of two wheelers – Under chapter 87 - Cenvat credit on bought out items - Department argued that the Cenvat credit availed on tool kits was not permissible - under Rule 3(1) of Cenvat Credit Rules, 2004 – Tool kits are “bought out items” which are neither fitted with motorcycle/two wheelers nor are used in or in relation to the manufacture of motorcycles by the appellant Held that:- Rule 138 of Central Motor Vehicle Rules, 1989 (as amended) deals with “signals and additional safety measures” for motor vehicle. Clause 4(b) of Rule 138 makes it incumbent on driver of every vehicle to carry the tool kit prescribed by the manufacturer. Since carrying of the tool kit in the vehicle is obligatory for the driver, it can be safely inferred that tool kit is necessary accessory of the motor vehicle because driving of the vehicle without those accessories would be violative of Rule 138(4)(b) of Central Motor Vehicle Rules, 1989. The tool kits were sold by the appellant along with final product and their cost is included in the price charged from the customers. The appellants have supplied the tool kit as per statutory requirements under Central Motor Vehicle Rules, 1989 as accessories to be used in relation to the manufacture of vehicle. Thus, ‘tool kit’ is squarely covered by the definition of ‘input’ given under Section 2(k)(i) of Cenvat Credit Rules. And appellant have rightly availed the Cenvat credit in relation to tool kits. In favour of assessee
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