TMI Blog2015 (1) TMI 852X X X X Extracts X X X X X X X X Extracts X X X X ..... 5/2015 - Dated:- 13-1-2015 - Shri R. Periasami, J. For the Appellant : Ms. Indira Sisupal, AC (AR) For the Respondent : Shri Srinivasan, Advocate, Ms. Ramya, Advocate JUDGEMENT All the three appeals filed by Revenue are taken up together as the issue involved is common and also arising out of common impugned order. 2. The short point involved in these appeals is that the adjudicating authority has disallowed the credit on plastic crates. But the Commissioner (Appeals) has allowed the appeals on the ground that they are eligible as inputs. Hence, Revenue has filed these appeals against the impugned order passed by the Commissioner (Appeals). 3. Heard both sides and perused the records. 4. The learned AR reitera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed on the show-cause notice wherein it has been clearly brought out that they have availed input credit on plastic crates. The same has also been reproduced at para 4 of the impugned Order-in-Appeal. She also relied on the decision of the Hon ble High Court in the case of CCE, Salem Vs. Pallipalayam Spinners Ltd. - 2014-TIOL-2288-HC-MAD and the Tribunal s Larger Bench decision in the case of Banco Products (India) Ltd. Vs. CCE - 2009 (235) ELT 636 (Tri. - LB). The learned counsel for M/s.TAFE reiterated the same argument as put forth by other counsel for the respondents. He submits that they have only claimed credit as inputs and not as capital goods. 6. I have carefully considered the submissions of both sides. The short issue is eligib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he capital goods, as contained in Rule 2(b) of the Cenvat Credit Rules, 2002, they would earn the status of the eligible capital goods for the purposes of Modvat. The appreciation of the various judgments on expression accessory as discussed above, leads us to observe that an accessory may or may not be required for essential working of the main unit, but is an object which is used for the convenience and effectiveness of that unit. It may also not be necessary that such accessory must be designed to be used in a particular machine. The same may be of a kind, which is capable of being used as a common object, with number of machines. The only criteria for an object to be held as an accessory, as emerging from the above extracted portion o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e issue. The plastic crates are used for transporting/storing of the goods in the factory of production. Proper storage of inputs is essential for efficient manufacturing process and in absence of proper facilities for storage 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 f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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