TMI Blog2007 (10) TMI 211X X X X Extracts X X X X X X X X Extracts X X X X ..... rder].- This appeal is directed against the Order-in-Appeal No.PI/313/2006, dated 20-9-2006. 2. The relevant facts that arise for consideration are that the appellants had purchased plastic crates, which were used in their factory premises for transportation, storing of raw materials and finished goods within the factory premises. Show cause notice was issued to the appellants based upon the audit query that appellants have availed Cenvat credit on plastic crates, which is inadmissible since the crates are not used in or in relation to manufacture of their final products. The adjudicating authority confirmed the demand on the ground that the plastic crates were used by the assessee for storing raw materials, which has no relation to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect the inputs from deterioration, avoid mixing with other inputs, for proper maintenance of quantitative records, the use of plastic crates is made and the same is essential in this respect. 4. The ld. SDR on the other hand submits that the Commissioner (Appeals) has clearly come to the conclusion that the plastic crates were used for convenient transportation of the finished goods to their customers and after delivering the finished products, the same were brought back to the factory for reuse. It is his contention that the said allegation was in the show cause notice and the appellants have not refuted the said allegation. It is his submission that the finding of the Commissioner (Appeals) is correct and does not require any interfer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the factory do not fall in the category of packing material and thus are not eligible for availing input credit. I, further, find that the plastic crates used by the assessee for storing of raw material cannot be said to be used in or in relation to manufacture as storing of goods cannot be considered as manufacture, I am therefore of the view that as per the eligibility criteria for availing Cenvat credit of input the plastic crates are neither inputs nor packing material and also not used in or in relation to manufacture of final products." It is seen from the above reproduced reply of the appellants as well as the findings of the adjudicating authority, that lower authority has denied the credit only on the ground that the plastic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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