TMI Blog2015 (10) TMI 282X X X X Extracts X X X X X X X X Extracts X X X X ..... handling of materials within the factory is admissible for credit under Rule 2 (b) of the Cenvat Credit Rules, 2002 presently Rule 2(a) of Cenvat Credit Rules, 2004. The nature of function attributable to the Plastic Crates and Trolleys used by the appellant are the same. The case law Commissioner of Pondicherry vs. Mohan Brewaries Limited (2010 (8) TMI 281 - MADRAS HIGH COURT) has been relied upon by the Revenue. The issue in this case relied upon by the Revenue was cenvat credit of duty paid on steel plates and M.S. Channels used for fabrication of Chimney. The facts involved in that case were different and, therefore, it was not be proper on the part of the first appellate authority to distinguish the Larger Bench judgment in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been held by the Larger Bench that Plastic Crates used between material handling equipment in the factory premises as capital goods are eligible to cenvat credit as inputs. Learned Advocate further relied upon the case law of PKPN Shipping Mills (P) Limited [2015 (316) ELT A160 (Mad.)]. It was his case that the Madras High Court relying upon the Larger Bench judgment in the case of Banco Products (India) Limited vs. CCE, Vadodara (supra), held that CENVAT credit of duty paid on Plastic Crates is admissible. 3. Shri T.K. Sikdar (AR) appearing on behalf of the Revenue argued that Trolleys used by the appellant for carrying components in the assembly line of the ACs are classifiable under Chapter 87 of Central Excise Tariff Act, 1985 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plastic crates can be considered as accessories of the machine falling under Sr. No. (i). For that, we need to understand the meaning of accessory. By referring to the various decisions, it stand strongly argued before us that an accessory means something which contributes in a sub-ordinate degree to attain the general result or effect and if added merely to the convenience or effectiveness of the machine, it would be an accessory. 6 to 23. 24. We fully agree with the above judgment on the 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; ..... X X X X Extracts X X X X X X X X Extracts X X X X
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