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TMI Blog2016 (12) TMI 1321X X X X Extracts X X X X X X X X Extracts X X X X ..... such goods. 2. Learned Counsel for the appellant argued that the said goods would fall under the category of inputs as has been held by the Larger Bench of the Tribunal in the case of Banco Products - 2009 (235) ELT 636 (Tri-LB). She argued that in the said decision, it was held that the plastic crates were used as material handling device within factory for internal transportation of goods and were held to be admissible as capital goods. 3. Learned AR relied on the order of the Hon'ble Supreme Court in the case of Gajra Gears Ltd. - 2015-TIOL-127-SC-CX, wherein the exact same issued has been discussed. 4. I have gone through the rival submissions. I find that the exactly the same issue which is disputed in&nb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der Chapter Heading 7326.90. 5. We have gone through the orders of the Commissioner as well as CESTAT and we find that the classification as done by the Department of the aforesaid goods is correct. Without burdening this order with our reasons we would like to refer to the following discussion contained in the impugned decision with which we are in agreement: "73.26 - Other articles of iron or steel 84.31 - Parts suitable for use solely or principally with the machinery of heading Nos. 8425 to 84.30." It is not in dispute that the impugned pallets are made of iron or steel. It is the contention of the respondents that these pallets are in the nature of material handling equipment and are specifically designed to put up in process goods ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Tariff. The learned SDR has rightly distinguished the decision in the case of Anup Malleable Ltd. which was dealing with the classification of Pallet frame assembly which moves on rails. We, therefore, hold that the impugned pallets, being not part of fork-lift trucks, are not classifiable under Heading 84.31 of the Tariff." 6. Insofar as the second question is concerned, namely, whether benefit of exemption under Notification No.67 /95 issued under the Central Excise Act, 1944 is available in respect of these pallets or not, we find that the Tribunal has held that the Notification exempts capital goods, as defined in Rule 57Q of the Central Excise Rules, 1944, manufactured in a factory of production and at the material time as per t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notification of the Government of India in the Ministry of Finance (Department of Revenue) No.108 /95-Central Excise, dated the 28th 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- (i) 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. Descripti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used the definition of "capital goods" appearing in Rule 57Q which was in operation at the material time and find that the goods in question are not covered by the said definition. However, as per para (ii) those goods which are specified in Column (ii) of the Table which is appended to the said Notification and manufactured in a factory and used within the factory of production in or in relation to manufacture of final products specified in column (3) of the said table also stands exempted. 9. Column 2 of the table gives the description of the inputs and column 3 of the table provides the description of the final products. Under the description of inputs, all goods falling within the Schedule to the Central Excise Tariff Act, 1985 are cov ..... X X X X Extracts X X X X X X X X Extracts X X X X
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