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2014 (3) TMI 662 - AT - Central ExciseDenial of CENVAT Credit - whether racks are capital goods - Procurement of “racks” of various sizes falling under heading No. 73.26, for storage of the final products, terry towels, packed in cartons before removal/dispatch - Held that:- in relation to the manufacture” have been used to widen and expand the scope, meaning and content of the expression “inputs” so as to attract goods which do not enter into finished goods. In the case of M/s. J.K. Cotton Spinning and Weaving Mills, Co. Ltd. v. The Sales Tax Officer, Kanpur and another - [1964 (10) TMI 2 - SUPREME COURT OF INDIA], Supreme Court has held that Rule 57A refers to inputs which are not only goods used in the manufacture of final products but also goods used in relation to the manufacture of final products. Where raw-material is used in the manufacture of final product it is an input used in the manufacture of final product. However, the doubt may arise only in regard to use of some articles not in the mainstream of manufacturing process but something which is used for rendering final product marketable or something used otherwise in assisting the process of manufacture. This doubt is set at rest by use of the words “used in relation to manufacture“ - Following decision of CCE & Ors. v. Solaris Chemtech Ltd. & Ors [2007 (7) TMI 2 - SUPREME COURT OF INDIA] - Decided in favor of assessee.
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