TMI Blog2011 (4) TMI 1128X X X X Extracts X X X X X X X X Extracts X X X X ..... AT credit on these MS slotted racks as they are being used for storage of raw material which is an integral part of the activity of manufacture and is involved in the process of manufacture, order set aside and appeal is allowed - E/678/2010 - A/153/2011-WZB/C-IV/(SMB), - Dated:- 13-4-2011 - Shri Ashok Jindal, J. Shri A.G. Kulkarni, Advocate, for the Appellant. Shri V.K. Singh, SDR, for the Respondent. [Order]. Appellants are in appeal against the impugned order in which CENVAT credit was denied on MS slotted racks which was being used for storing material, in their factory premises. 2. The facts of the case are that the appellants are manufacturer and are availing CENVAT credit on inputs and capital goods in terms o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld. DR submitted that these MS slotted racks are neither inputs nor the accessories of capital goods. Hence the appellants are not entitled for CENVAT credit. In support of his contention he placed reliance on the Mehra Brothers v. Jt. Commercial Officer - 1991 (51) E.L.T. 173 (S.C.) and Bayer Indian Sytans Ltd. v. CCE, Madurai - 2005 (187) E.L.T. 353 (T-Chennai). 5. Heard both sides. 6. On careful examination of the submissions made by both sides, the short issue before me is that whether the appellants are entitled for availment of CENVAT credit on MS slotted racks which are being used for storing the raw material or not. The contention of the ld. DR is that these MS slotted racks are neither input as per the definition of Rule 2(k) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of process of manufacture integral to the manufacture of final product. In the absence of delivery of raw material, the manufacturing process cannot start. Such delivery of goods includes transportation of goods by plastic carriage. In this case also these MS slotted racks is nothing but a storage system of raw material and as held by this Tribunal in the case of Sonai Engineering that storage system being used for storing raw material by the assessee is an integral part of the activity of manufacturing and is directly or indirectly involved in the process of manufacturing. It is not disputed that these racks are not being used for storage and raw material. Therefore, the appellants are entitled for CENVAT credit on these MS slotted rack ..... X X X X Extracts X X X X X X X X Extracts X X X X
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