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TMI Blog2012 (5) TMI 249X X X X Extracts X X X X X X X X Extracts X X X X ..... der chapter 84 of the CETA, 1985. As a market gimmick, along with spray guns they supply playing cards as free gift. They procure the playing cards on payment of excise duty. They have taken the CENVAT credit of the excise duty paid on the playing cards while discharging the excise duty liability on the spray guns. It is their contention that the cost of playing cards is included in the assessable value of the spray guns even though they have claimed that playing cards are supplied free. The department is of the view that the playing cards are neither 'inputs' or 'input service' and therefore CENVAT credit of the duty paid on playing cards is inadmissible under the CENVAT credit Rules, 2004. Accordingly, notice was issued and order was pass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the manufacture of spray guns. Therefore, they cannot be considered as inputs. Since playing cards are goods they cannot be considered as input services either. Therefore, the question of availing CENVAT credit on an item which is neither an input nor an input service is not permissible under the law. 5. I have carefully considered the rival submissions. In the instant case, playing cards are supplied as a gift while selling spray guns by the appellant. They are not required for the manufacture of spray guns nor are they accessories to spray guns. As per rule 2(k) of the CENVAT Credit Rules, 2004, input means - "(k) "input" means - (i) All goods, except light diesel oil, high speed diesel oil and motor spirit, commonly known as petrol, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther inputs nor input service for the purpose of CENVAT Credit Rules, 2004. Accordingly, the question of taking CENVAT credit of duty paid on playing cards does not appear to be admissible in terms of the said rules. Thus the appellant has not made out a prima facie case for grant of waiver of pre-deposit of the dues adjudged. Accordingly, I direct the applicant to make a pre-deposit of Rs.49,533/- (Rupees Forty nine thousand five hundred thirty three only) within a period of four weeks and report compliance on 04.05.2012. On such compliance, the balance of the dues adjudged, namely, interest and penalty shall stand waived and, recovery thereof stayed during the pendency of the appeal.
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