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2019 (2) TMI 861 - AT - Central ExciseCENVAT Credit - inputs - HDPE Pipes - credit denied on the ground that it appeared that these HDPE pipes were only ‘optional’ requirement and are not essential for the functioning of the goods manufactured - Held that:- The HDPE pipes are supplied along with the FO integrated system and the excise duty is also paid on the same - further, in the absence of HDPE pipes, the final product of the appellant is not functional. Analyzing the definition of input as contained in rule 2(k) which include accessories of the final product cleared along with the final product, and it is found that the HDPE pipes are accessories of the final products and is always cleared along with the final product as is reflected in the invoices produced by the appellant. Further in the case of CCE vs. Insulation Electrical (P) Ltd. [2008 (3) TMI 22 - SUPREME COURT], the Hon’ble Supreme Court has held that the difference between the accessories and parts is that accessory is something supplementary or subordinate in nature and need not be essential for the actual functioning of the product, whereas part is an essential component of the whole without which the whole system cannot function. Credit allowed - appeal allowed - decided in favor of appellant.
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