TMI Blog2017 (12) TMI 1149X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacture of final product, hence clearly eligible for cenvat credit. The material used for storage system is eligible for cenvat credit - appeal allowed - decided in favor of appellant. - E/89809/13 - A/91021/2017 - Dated:- 27-11-2017 - Mr. Ramesh Nair, Member (Judicial) Shri. Anjali Hirawat, Advocate for the Appellants Shri. S.V. Nair, Asstt. Commissioner(A.R.) for the Respondent ORDER The issue involved in the case is that whether the appellant is entitled for the cenvat credit on angles, channels, beams, nut-bolts, guides etc. used by them for fabrication of vertical storage structure, racks for storage of raw material and finished goods. 2. Ms. Anjali Hirawat, Ld. Counsel, appearing on behalf of the Appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acture. Without storage system, material management is impossible and consequently it will adversely affect the entire manufacturing chain in the factory. Therefore in my view, since the steel items viz, angles, channels, beams etc used for making storage rack are used in or in relation to manufacture of final product, hence clearly eligible for cenvat credit. This issue has been considered time and again by this tribunal, wherein following judgment was passed allowing the cenvat credit: Banco Products (India) Ltd (supra) 24. We fully agree with the above judgment on the issue. The plastic crates are used for transporting/storing of the goods in the factory of production. Proper storage of inputs is essential for efficient manu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion is an integral part of the activity of manufacture of final product. Hence the Cenvat credit was allowed. 6. I have also gone through the facts of the case and the records and find that in the case of Banco Products (India) Ltd. v. CCE reported in 2009 (235) E.L.T. 636 (Tri. - LB), also held that the plastic crates used for storing/handling of raw materials, intermediate products etc. are held as capital goods are also as input and further find that the storage system is being used for storing the raw material by the respondent is an integral part of the activity of manufacture and is directly or indirectly involved in the process manufacturing. Hence the Cenvat credit cannot be denied. Accordingly, I do not find any merit al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... seen the decision of Banco Products (India) Ltd. wherein this Tribunal has relied on CCE v. Rajasthan State Chemical Works reported in 1991 (55) E.L.T. 444 (S.C.) where the apex court has observed that the manufacturing process starts with the drawing of water from the reservoir by applying the same fact it can be safely concluded that manufacturing process starts with the issuance of inputs and further transportation products is only a part of process of manufacture integral to the manufacture of final product. In the absence of delivery of raw material, the manufacturing process cannot start. Such delivery of goods includes transportation of goods by plastic carriage. In this case also these MS slotted racks is nothing but a storage ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te that the said storage system consists of various racks put together for storage of inputs and/or finished goods. The lower authorities have denied the Cenvat credit only on the ground that these goods are not capital goods. I find that the definition of input in Rule 2(k) of the Cenvat Credit Rules would specifically indicate that all goods which are used for manufacturing of products, whether directly or indirectly and whether contained in the final product or not, if they are within the factory of production, Cenvat credit of the duty paid is eligible. In my view the lower authorities have accepted that the said storage system is used by appellant in their factory and used for storing raw materials. In my view the judgment of the Large ..... X X X X Extracts X X X X X X X X Extracts X X X X
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