TMI Blog2010 (5) TMI 443X X X X Extracts X X X X X X X X Extracts X X X X ..... finished goods - delivery of the goods includes transportation of the goods by plastic crates - plastic crates are again used for such transportation - plastic crates eligible for Modvat credit - E/657-658/2009 - 868-869/2010 - Dated:- 14-5-2010 - Shri M.V. Ravindran, Member (J) REPRESENTED BY : Shri S. Viswanathan, Advocate, for the Appellant. Shri M.M. Ravi Rajendran, JDR, for the Respondent. [Order]. - These two appeals are filed against the Order-in-Appeal Nos. 33 34/2009-C.E. dt. 18-3-2009. 2. Heard both sides and perused the records. 3. The issue involved in this case is regarding the denial of Cenvat credit of the Central excise duty paid on the following items : (a) Polysterne Panels (b) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td. [2006 (199) E.L.T. 698 (Tri.-Chennai)] and Shinhan Plasto (I) P. Ltd. v. CCE, Chennai [2008 (227) E.L.T. 113 (Tri.-Chennai)] to submit that once these goods are not covered under the definition of capital goods, they are not eligible for Cenvat credit. 6.I have considered the submissions made by both sides and perused the records. 7. As regards the Cenvat credit of the central excise duty paid on Polysterene panels and steel doors frames, I am of the considered view that the credit cannot be allowed as these are not capital goods and are also not inputs for capital goods. 8. Ld. Counsel has relied upon the decision in the case of Reliance Industries Ltd. for the proposition of eligibility to the credit more specifica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge and transportation; the same will affect the manufacturing process. Further, the Hon'ble Supreme Court in the case of M/s. Rajasthan State Chemical Works has observed that the manufacturing process starts with the drawing of water from the reservoir. By applying the same fact, it can be safely concluded that the manufacturing process starts with the issuance of the inputs from the stores and their further transportation to the production platform is only a part of the process of manufacture integrally related to the final production. In absence of the delivery of the raw material to the manufacturing platform, the process cannot start. Such delivery of the goods includes transportation of the goods by plastic crates. Similarly, finished ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Rule 15(3) of Rs. 2000/- is liable to be set-aside and I do so. 12. As regards the penalty in the second appeal (No. E/657/09) imposed under Section 11AC by the adjudicating authority, I find that the provisions of Section 11AC are not attracted in this case. Provisions of 15(3) of Cenvat Credit Rules are not invoked for imposition of penalty. It is also seen in the show cause notice that the lower authorities have cited Rule 15 for imposition of penalty on the appellant. As I have held that the appellants are not eligible for the Cenvat credit for Polsterene Panels, Steel Doors frames, the appellant is liable to be visited with the penalty under Rule 15(3). As the issue of availment of credit on the Polsterne Panels and Ste ..... X X X X Extracts X X X X X X X X Extracts X X X X
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