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TMI Blog2015 (1) TMI 852X X X X Extracts X X X X X X X X Extracts X X X X ..... eals 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 reiterated the grounds of appeals. She submits that the adjudicating authority has rightly disallowed the credit as it is neither inputs nor capital goods. The plastic crates are classifiable under Chapter 39 of the CETA, 1985. By virtue of exclusion of Chapter Note 84 products falling under Chapter 39 are not classifiable as capital goods. She relied on the following decisions:- (a) CCE, Salem Vs. PKPN Spinning Mills (P) Ltd. - 2005 (192) ELT 541 (b) CCE, Salem Vs. Sugavaneswara Spinner Mills (P) Ltd. - 2006 (199) ELT 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut 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 eligibility of CENVAT credit on the plastic crates. The issue has also been settled by the Larger Bench in the case of Banco Products (India) Ltd. (supra). Basically Revenue filed these appeals relying on the decisions of the Tribunal in the cases of PKPN Spinning Mills (P) Ltd. (supra) whereas the Honble High Court of Madras, vide judgment dated 14.2.2013 in CMA No. 4162/2005 filed by PKPN Spinning Mills Ltd. set aside the Tribunal's order dated 24.6.2005 and allowed the appeal. The relevant paragraphs are reproduced as under:- Le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 of various judgments is that that a particular item should be capable of being used with a machine and should advance the effectiveness of working of that machine. The plastic crates in question are used for transportation of the raw material to the processing machine and all the finished goods from the machine to the storage area. It can be argued that instead of using such plastic crates as material handling device, the various components or the inputs can be carried manually also. However, the question is as to whether such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 products are required to be stored in a bonded store room. The plastic crates are again used for such transportation. As such, we are of the view that the plastic crates would also be eligible for modvat credit as input. 8. Mr. Vikram Ramakrishnan, learned counsel for the first respondent/Revenue submitted tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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