TMI Blog2015 (10) TMI 336X X X X Extracts X X X X X X X X Extracts X X X X ..... they are required to be used for manufacture of final product and as such can be considered as inputs. The Hon'ble Karnataka High court in the case of Rane (Madras) Ltd Vs CCE Bangalore [2007 (12) TMI 208 - KARNATAKA HIGH COURT] has allowed the CENVAT credit on universal measuring machine used by the assessee for measurement of jigs, fixtures and gauges which are intended for manufacture of intermediary products as well as measuring some of the final products. It is well settled law that where a particular process is integrally connected with the ultimate production of the goods, but for that process, manufacture of goods would be commercially inexpedient, articles required in that process would be considered as having been used in the manu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... round that the same are not raw material which get consumed during the manufacture of the final product. 2. After hearing both sides duly represented by Smt L. Maithili, advocate for the assessee and Shri S. Teli, A.R. for the Revenue, I find that the limited dispute relates to the admissibility of CENVAT credit in respect of the above three items. As per the appellant, the same are extensively used in the food processing and tobacco industries. The same are in the nature of traps which are used in the places of storage of tobacco, cigarettes, processing lines and manufacturing lines to monitor the level of tobacco beetle infestation. If the said beetle infestation is not checked, the same is likely to destroy the raw material as also th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... should be considered as inputs on the ground that they are not going into the manufacturing process at any stage. The appellant's plea of limitation also stands rejected by Commissioner (Appeals) by observing that they have taken the credit with malafide intention. For the same reason, he has upheld imposition of penalty and confiscation of goods. 4. The appellants have relied upon a certificate dated 17.02.2010 issued by the National Institute of Plant Health Management. For better appreciation I reproduce the said certificate: A team of Officers of this Institute visited the VST Industries Limited, Hyderabad on 14/10/2009 and observed that the Firm has been using pheromone traps in their tobacco Storage areas, processing lines, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... final product and as such can be considered as inputs. The Hon'ble Karnataka High court in the case of Rane (Madras) Ltd Vs CCE Bangalore [2009(236) ELT 33 (Kar)] has allowed the CENVAT credit on universal measuring machine used by the assessee for measurement of jigs, fixtures and gauges which are intended for manufacture of intermediary products as well as measuring some of the final products. It is well settled law that where a particular process is integrally connected with the ultimate production of the goods, but for that process, manufacture of goods would be commercially inexpedient, articles required in that process would be considered as having been used in the manufacture of goods. It is nobody's case that tobacco beetle ..... X X X X Extracts X X X X X X X X Extracts X X X X
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