TMI Blog2009 (12) TMI 272X X X X Extracts X X X X X X X X Extracts X X X X ..... available during the financial year in which materials were received and the balance of 50% was available only during the next financial year. Held that- The Commissioner (Appeals) has clearly held that the same are in the nature of consumable used in relation to manufacture of final products and therefore, appropriately to be treated as inputs. No valid grounds have been adduced to interfere with the finding of the Commissioner (Appeals) which is based on appreciation of the factual matrix in the said case. In view of the above, the appeal is rejected. Cross-Objection which is merely in support of the order of the Commissioner (Appeals) is also disposed of. - E/2257/2007-SM(BR) - 1524/2009-SM(BR)(PB), - Dated:- 10-12-2009 - Shri M. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2007-08. He also imposed a penalty of Rs. 50,000/-. Commissioner (Appeals) held that the said items could be considered as inputs and therefore, the credit taken at one go at the time of receipt of the impugned goods were in order and set aside the demand for interest. 4. Learned Jt. CDR referring to the grounds of appeal submits that metal band saw blades and steel shots are to be considered as capital goods as the same cannot function without the capital goods. 5. I have carefully considered the submissions of the learned Jt. CDR and perused the records. The finding of the original authority about the duration of use and nature of use of these two items are as follows: "The noticee has submitted in their written reply that the life ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Cenvat Credit Rules, both the items namely, 'metal saw blades' and 'steel shots' used by the appellants in connection with the production of goods as consumables would merit classification under inputs only and therefore, the credit taken by them is in order." 6. The term 'input' is a relative term. For example, yarn is an input for grey fabrics, grey fabrics is an input for processed fabrics and processed fabrics is an input for garments etc. Similarly, the term 'capital goods' is also a relative terms. A fan can be a capital goods. A fan used in a motor vehicle to cool radiator is an input in relation to motor vehicle manufactured. Keeping the above yard stick in mind, if the role and period of usage as recorded by the original auth ..... X X X X Extracts X X X X X X X X Extracts X X X X
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