TMI Blog2013 (1) TMI 529X X X X Extracts X X X X X X X X Extracts X X X X ..... Motor Vehicle Rules, 1989 (as amended) deals with “signals and additional safety measures” for motor vehicle. Clause 4(b) of Rule 138 makes it incumbent on driver of every vehicle to carry the tool kit prescribed by the manufacturer. Since carrying of the tool kit in the vehicle is obligatory for the driver, it can be safely inferred that tool kit is necessary accessory of the motor vehicle because driving of the vehicle without those accessories would be violative of Rule 138(4)(b) of Central Motor Vehicle Rules, 1989. The tool kits were sold by the appellant along with final product and their cost is included in the price charged from the customers. The appellants have supplied the tool kit as per statutory requirements under Cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Excise Tariff Act, 1985 and was availing Cenvat credit facilities in respect of tool kits sold along with two wheelers. Appellants for the purpose of excise duty included the value of tool kits in the invoices issued for sale of motor cycles. Tool kits were purchased by the appellants from the market and they availed and utilized the Cenvat credit in respect of excise duty paid for the took kits. 3. The department was of the view that the Cenvat credit availed by the appellant in respect of tool kits was not permissible under Rule 3(1) of Cenvat Credit Rules, 2004. Accordingly, show cause notices were issued to the appellant raising the demand in respect of above referred appeals relating to different periods. The Commissioner has disal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rule 3(i) of Cenvat Credit Rules, 2004. 6. Thus, learned counsel for the appellants have thus concluded that the appellant has correctly availed the Cenvat credit on tool kits and strongly urged for setting aside of the impugned order. 7. In support of his contention, ld. Counsel for the appellants has relied upon the various decisions of the Tribunal namely - (i) C.C.E., Indore v. Bajaj Tempo Ltd., 2006 (205) E.L.T. 404 (Tri.-Del.), (ii) Bajaj Tempo Ltd. v. C.C.E., Pune-I, 2008 (230) E.L.T. 506 (Tri.-Mumbai) = 2010 (18) S.T.R. 95 (Tri.-Mumbai) and (iii) Kinetic Motor Company Ltd. v. C.C.E., Indore, 2001 (129) E.L.T. 366 (Tri.-Del.). 8. Shri A.K. Jain, learned Jt. C.D.R. for Revenue on the contrary has argued in support of the impu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... only known as petrol used in or in relation to the manufacture of final products whether directly or indirectly and whether contained in the final product or not and includes lubricating oils, greases, cutting oils, coolants, accessories of the final products cleared along with the final product, goods used as paint, or as packing material, or as fuel, or for generation of electricity or steam used in or in relation to manufacture of final products or for any other purpose, within the factory of production. On bare reading of the aforesaid provision, it is clear that input means and includes accessories of final product cleared along with final product. 12. Now, the question arises whether tool kit can be termed as accessories of fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pon by the respondent, we may note that the judgement of Patna High Court in TELCO is not applicable to the facts of this case for the reason that the aforesaid judgement was passed in relation to interpretation and scope of the Rule 57A of Central Excise Rules, 1944 which did not include accessories of the final product in the definition of input. This case is governed by Cenvat Credit Rules, 2004 wherein accessories have also been included in the definition of input. Similarly, the judgment of the Tribunal in the matter of Maruti Udyog Ltd. is not applicable as it relates to provisions prior to coming into operation of Cenvat Credit Rules, 2004. 16. In view of the above discussion, the impugned order of the Commissioner disallowing the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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