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Wika Instruments India Pvt. Ltd. Versus Commissioner of Central Excise, Pune III

2015 (12) TMI 662 - CESTAT MUMBAI

CENVAT Credit - credit in respect of plastic crates, trolleys, welding table and welding chair - denial of CENVAT credit on the ground that the material on which credit was availed are neither inputs nor capital goods - Held that:- On going through the photographs produced by the learned counsel it is observed that all the items i.e. plastic crates is used for handling of the material, such as semi-finished goods in the factory of the appellant. The movement of semi-finished goods during the pro .....

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f manufacturing. The issue of eligibility to CENVAT credit on trolley has been dealt by the Tribunal in the case of Shinhan Plasto (I) Pvt. Ltd. (2008 (2) TMI 157 - CESTAT, CHENNAI) - trolley is used in or in relation to the manufacturing process of final products. Therefore, in my considered view, CENVAT credit on trolley is rightly available. - CENVAT credit in respect of welding table and welding chair, in my considered view, is rightly admissible. - Decided in favour of assessee. - APPEAL NO .....

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11AC was reduced from ₹ 2,66,025/- to ₹ 1,62,962/-. 2. The fact of the case is that the appellant availed CENVAT credit amounting to ₹ 2,66,025/- in respect of plastic crates, metal drawer, aluminium tray, welder chair, lamps and trolleys. show cause notice dated 10/05/2010 was issued to the appellant proposing denial of CENVAT credit on the ground that the material on which credit was availed are neither inputs nor capital goods as per the definition provided in CENVAT Credit .....

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ground that the appellant reversed the CENVAT credit of ₹ 1,03,063/- relating to lamps and metal drawers and also paid interest for the said amount immediately after the audit team pointed out the wrong availment of input credit even before the issuance of show cause notice. Aggrieved by the Commissioner (Appeals); impugned order dated 30/12/2011, the appellant is before me. 3. Shri S. Narayanan, the learned counsel for the appellant submits that they are not contesting the credit of ͅ .....

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process of manufacture. The welding chair is used by the welder while doing the welding process which is one of the vital processes of the manufacturing of their final products. He submits that this welding chair is exclusively used for the purpose of carrying out the welding by the welder and not used for any other purpose. As regards the trolley, he shown photographs from which it appears that the semi-finished machine parts are kept on the trolley. It is also clear from the photographs that t .....

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e, the same is used indirectly and not contained in the final products. He submits that the Revenue has not produced any evidence that these goods are being used for the purpose other than the manufacturing process. He placed reliance on the following judgment which directly on the inputs in question. Welding table is exclusively used for the purpose of carrying out the process by the welder as such welding cannot be carried out without such table. The welding process of various components is a .....

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227) ELT 113(Tri.-Chennai); (iii) Switch Gear Control Technics Pvt. Ltd. vs. Commissioner of Central Excise, Bangalore 2009 (240) ELT 78 (Tri.-Del.). 4. On the other hand, Shri S. N. Hasija, Superintendent (AR) appearing on behalf of the Revenue reiterates the findings of the impugned order. He submits that all the items in question are not directly used in the manufacture and, therefore, the same are not eligible for CENVAT credit. He placed reliance on the judgment in the case of Vikram Cement .....

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all the items i.e. plastic crates is used for handling of the material, such as semi-finished goods in the factory of the appellant. The movement of semi-finished goods during the process of manufacturing is part of the manufacturing process of the final products of the appellant. The judgment of the larger bench of this Tribunal in Banco Products (India) Ltd. (supra) is squarely applicable in respect of CENVAT credit on the plastic crates. The relevant portion of the judgment is extracted below .....

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f 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 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 crat .....

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that the trolley is specially designed to keep the machine parts which is used in the manufacture of their final products. The trolley is used as a material handling equipment within the factory during the process of manufacturing. The issue of eligibility to CENVAT credit on trolley has been dealt by the Tribunal in the case of Shinhan Plasto (I) Pvt. Ltd. (supra) wherein it was held as under: 3. After considering the submissions, I have found valid point in the submissions made by learned Cou .....

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ese goods is not to be denied to them on account of that the invoices did not mention the correct Tariff Heading. On a perusal of the rival Headings as given in the Tariff Schedule, I find that Heading 84.28 is the specific entry for material handling equipments like trolleys whereas Heading 94.03 covers other furniture and parts thereof . By no stretch of imagination can the trolleys be considered to be furniture. If the original authority or the first appellate authority had any doubt in this .....

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