TMI Blog2016 (11) TMI 996X X X X Extracts X X X X X X X X Extracts X X X X ..... material handling equipment, to keep and carry work in progress goods from one machine to the other. Thus, the use of the pallets is for carrying out the material from one machine to the other. It cannot, therefore, be said that these goods are used in relation to the manufacture in or in relation to the manufacture of the final products. We are, therefore, of the opinion that column (2) of Notification shall also not be attracted. The issue is squarely covered by the Hon’ble Supreme Court decision in the case of Gajra Gears Ltd., - appeal dismissed - decided against appellant. - APPEAL No.E/3164/05 - Order No.A/86906/16/EB - Dated:- 1-4-2016 - Mr. S.S. Garg, Member (Judicial) And Mr. Raju, Member (Technical) Shri. Sachim Chitnis, Advocate for appellant Shri. NN Prabhudesai, Supdt. (AR), for respondent Per: Raju 1. The appellants are engaged in manufacture of laminated safety glasses falling under heading 7004.20. Pallets and trolleys are used in the various stages of manufacture of final products basically as material handling equipment for movement of semi-finished and finished products from one place to another in the factory efficiently and to avoid b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the benefit has to be extended to the plastic crates, as input. The plastic crates were also held to be input in the case of M/s. GKN Sinter Metals Ltd. v. CCE Pune-I - 2008 (224) E.L.T. 560 (Tri.-Mumbai). He argued that the decision of Maruti Udyog Ltd. (supra) has been given in respect of definition of capital goods as is existed in the year 1995-96 and is not applicable to the definition of capital goods as it existed in the year 1999-2000. He further argued that the table annexed to Rule 57Q of the CER, 1944 covers all components/spares and accessories of the goods specified against Sl.No.1 to 4 of the said table. It was argued by the learned Counsel that even if the said goods are held classifiable under Chapter 73 of the CETA, the same being the accessories of the material under the equipment falling under heading 84.27 84.28 will be covered by the definition of capital goods. 3. The learned AR relies on the impugned order. He relies on the decision of the Hon ble Supreme Court in the case of Gajra Gears Ltd., Vs. CCE - 2015 (320) ELT 38 (SC). He argued that exactly the same issue regarding leviability of duty exemption on the pallets manufactured and used within th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transfer and as the pallets are suitable for use solely or principally with the machinery of Heading No. 84.27 (fork-lift trucks) these are to be classified under Heading 84.31. For being classified under Heading 84.31, the goods should be first a part and secondly suitable for use solely or principally with the machinery of Heading Nos. 84.5 to 84.30. The impugned pallets are not parts of fork-lift trucks as they are complete without these pallets. It has been held by the Tribunal in the case of Sandvik Asia Ltd. v. C.C.E., Pune, 1997 (93) E.L.T. 475 (T) that a part is one without which the particular machinery was not operational or could not suitably discharge the function for which it has been designed . The Tribunal in the said decision has found that inserts were not parts of the excavator as the excavator was operational even without these inserts and they were meant only to improve the life of the teeth provided with the scoopers . In the present matter also the fork-lift truck is operational without pallets and as such pallets are not parts of the same. If the contention of the Respondent is accepted, motor sprit will be part of a motor car as the same cannot be use ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supplied to projects funded by the United Nations or an International Organisation, on which exemption of duty is available under the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 108/95-Central Excise, dated the 28 th August, 1995, which are exempt from the whole of duty of excise leviable thereon or are chargeable to Nil rate of duty. Explanation. - For the purposes of this notification `inputs does not include - (1) packaging materials in respect of which any exemption to the extent of the duty of excise payable on the value of the packaging materials is being availed of for packaging any final products; (ii) packaging materials or containers, the cost of which is not included in the assessable value of the final products under section 4 of the [Central excise Act, 1944] (1 of 1944). S.No Description of inputs Description of final products 1. (2) (3) 1. All goods falling within the Schedule to the Central Excise Tariff Act, 1985(5 of 1986), other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oducts, as given in column 3, we find that it again mentions the goods falling within the schedule to the Central Excise Tariff Act except certain specified items. Thus, the question that arises is as to whether the goods in question, namely, pallets manufactured in the factory are used within the factory of production in or in relation to the manufacture of the final products. 10. It is an admitted position, as explained by the appellant itself, that these pallets which are manufactured/assembled in the factory of the appellant are in the nature of material handling equipment, to keep and carry work in progress goods from one machine to the other. Thus, the use of the pallets is for carrying out the material from one machine to the other. It cannot, therefore, be said that these goods are used in relation to the manufacture in or in relation to the manufacture of the final products. We are, therefore, of the opinion that column (2) of Notification shall also not be attracted. 11. For our reasons, as mentioned above, we affirm the conclusion arrived at by the authorities below. 5. In view of the fact that the issue is squarely covered by the Hon ble Supreme Court deci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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