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TMI Blog2017 (10) TMI 340X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeals are hereby given below: Appeal No. Period Amount involved E/20005/2014-SM January 2008 to August 2010 Rs.6,94,672/- E/20155/2014-SM September 2011 to June 2012 Rs.27,685/- E/20156/2014-SM September 2009 to August 2011 Rs.1,36,906/- 2. For the sake of convenience, the facts of appeal No.20155 are taken. Briefly the facts of the present case are that the appellants are engaged in the manufacture and clearance of excisable goods viz., outdoor/indoor OFC assembly, falling under Chapter 84 and 85 of Central Excise Tariff Act, 1985 and are also availing benefit of CENVAT credit of duty paid on inputs under the provisions of CENVAT Credit Rules, 2004 (CCR). During the course of audit by Departmental officers, it was n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... process and submitted that wherever HDPE pipes are required by their customers for use as conduits for additional precaution, the same are cut to length and are assembled at the appellant s unit. He further submitted that all the components used in the assembly are cleared from the factory together as a package and they constitute the complete system. He also submitted that their network/system becomes marketable only when all the items required for a particular project is supplied by them particularly when customers stipulates on supply of all the items including HDPE conduits. He also submitted that the appellants have discharged the duty on a value which is inclusive of HDPE pipes shown as components of FO integrated system in their dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ol, shall not be treated as an input for any purpose whatsoever. Explanation 2.- Input include goods used in the manufacture of capital goods which are further used in the factory of the manufacturer; but shall not include cement, angles, channels, Centrally Twisted Deform bar (CTD) or Thermo Mechanically Treated bar (TMT) and other items used for construction of factory shed, building or laying of foundation or making of structures for support of capital goods; 6.1 If I analyze the definition of input as contained in rule 2(k) which include accessories of the final product cleared along with the final product, and I find that the HDPE pipes are accessories of the final products and is always cleared along with the final product as is ref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the vehicle or the chassis but all things which are necessary to make the final product marketable . The Hon'ble High Court held that for motor vehicle, the tool kit and the first aid kit has to the part of the vehicle before the same can be put to use . It is evident that the ratio on which the CENVAT credit has been allowed in respect of tool kit and first aid kit is squarely applicable for permitting CENVAT credit in respect of sari guard and rear view mirror assembly." 6.4 Further in the case of CCE vs. Insulation Electrical (P) Ltd. (supra), the Hon'ble Supreme Court has held that the difference between the accessories and parts is that accessory is something supplementary or subordinate in nature and need not be essential for the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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