TMI Blog2018 (12) TMI 548X X X X Extracts X X X X X X X X Extracts X X X X ..... charges are paid as conversion charges to the job worker. These elements including the excise duty has gone into the assessable value of the pressure cooker which is cleared along with the free Tawa in the combo-package. This being so, the appellants have rightly availed the Credit on the inputs. The activity of supply of job worked goods to the principal manufacturer and thereafter, the clearance of the finished product, cannot be considered as a trading activity. Consequently, there is no requirement for the appellant to comply with the provision of maintaining of separate accounts as per Rule 6 of the CENVAT Credit Rules, 2004 - the Credit availed on the inputs used for the manufacture of Tawa is correct and proper. Appeal allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvices used for the manufacture of pressure cookers as well as the alleged trading activity. After due process of law, the Original Authority confirmed the demand of ₹ 10,80,681/- under Rule 14 of the CENVAT Credit Rules, 2004 along with interest and imposed penalty. In appeal, the Commissioner (Appeals) upheld the same. Hence, this appeal. 3.1 On behalf of the appellant Ld. Counsel Shri. K. S. Naveen Kumar and Shri. R. Dakshina Murthy submitted that the appellant had engaged M/s. Triveni as job worker for the manufacture of Tawas. The appellants supplied inputs to M/s. Triveni who manufactured the Tawas and cleared them to the appellants on payment of excise duty. The appellant has also paid the job charges as conversion charges t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded that the activity alleged is not a trading activity and consequently, there is no requirement for maintaining separate accounts. 4. Ld. AR Shri. L. Nandakumar supported the findings in the impugned Order. He submitted that since Tawa is cleared without payment of duty by the appellant, the Credit is not eligible on the inputs used for the manufacture of Tawa and since the activity is nothing but a trading activity, they ought to have maintained separate accounts. In the absence of such bifurcation of accounts, the Credit availed on common inputs and input services is irregular. The demand therefore is legal and proper. 5. Heard both sides. 6. The appellant has cleared pressure cooker along with Tawa in a combo-package. The MRP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cleared along with the free Tawa in the combo-package. This being so, the appellants have rightly availed the Credit on the inputs. The activity of supply of job worked goods to the principal manufacturer and thereafter, the clearance of the finished product, cannot be considered as a trading activity. Consequently, there is no requirement for the appellant to comply with the provision of maintaining of separate accounts as per Rule 6 of the CENVAT Credit Rules, 2004. In my view, therefore, the Credit availed on the inputs used for the manufacture of Tawa is correct and proper. 9. A similar situation was discussed by the Tribunal in the case of M/s. Manik Machinery Manufacturers P. Ltd. vs. C.C.E., Mumbai-IV 2016 (339) E.L.T. 334 (Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... product for sale promotion have been considered as input and Cenvat credit was allowed. In the case of Prime Health Care Products (supra) Hon ble Gujarat High Court on the identical issue also allowed the credit in respect of bought out tooth brush supplied along with tooth paste manufactured by the assessee. The Hon ble High Court has allowed the Cenvat credit on the tooth brush considering it as input. As regard the judgments relied upon by the Ld. AR, I find that since there is reasoned judgment of the Hon ble High Court of Gujarat, it prevails over all the decisions given by the Tribunal, therefore following the Hon ble Gujarat High Court judgment, I am of the considered view that Cenvat credit in respect playing cards supplied by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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