TMI Blog2018 (12) TMI 724X X X X Extracts X X X X X X X X Extracts X X X X ..... have erred in interpreting that in order to qualify as inputs, the goods have to be used for manufacture. Rule 16 speaks about situation wherein duty paid goods are brought into factory for refine, reconditioned or for any other reason - In the present case, the goods are not brought to the factory but they have been bought by the manufacturer and the value of such goods have been included in the assessable value of the final product. The situation does not give raise to invoke Rule 16(1) at all. The demand cannot sustain and requires to be set aside - appeal allowed - decided in favor of appellant. - Appeal No. E/41389/2018 - Final Order No. 43070/2018 - Dated:- 10-12-2018 - Ms. Sulekha Beevi C.S., Member (Judicial) Shri S. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gle gift pack‟ and are cleared as a single item by payment of excise duty. They availed credit of the excise duty paid on the fireworks that was purchased from outside manufacturers. The department is of the view that there is process of manufacture involved in packing the gift box by combining various firework items and therefore has denied credit. It is submitted by him that appellants included the value of the fireworks purchased from other manufacturers to arrive at the value of gift boxes which were cleared on payment of duty. Therefore, the fireworks purchased from other manufacturers are inputs for the appellants. The show cause notices propose to recover the credit availed on fireworks which are purchased from outside manufac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duct / gift boxes cleared by them. The definition of inputs for the relevant periods read as under:- (k) input means (i) all goods used in the factory by the manufacturer of the final product; or (ii) any goods including accessories, cleared along with the final product, the value of which is included in the value of the final product and goods used for providing free warranty for final products The definition thus show that not only the inputs that is used for manufacture of final products but also those goods cleared whose value is included in such final product will come within the definition of inputs. Further, all goods used in the factory by the manufacturer of the final product would come within the def ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ulfilled the criteria of inputs, therefore credit cannot be denied of the duty paid on playing cards. Though there are contrary judgments on this issue but comparing the judgments of both the sides, I find that Tribunal s Single and Division Bench in cases Cello Home products (supra) and G.S. Enterprises (supra) respectively held that items supplied along with final 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 toot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or section 4 or section 4A of the Act, as the case may be. [Explanation. - The amount paid under this sub-rule shall be allowed as CENVAT credit as if it was a duty paid by the manufacturer who removes the goods.] (3) If there is any difficulty in following the provisions of sub-rule (1) and sub-rule (2), the assessee may receive the goods for being re-made, refined, re-conditioned or for any other reason and may remove the goods subsequently subject to such conditions as may be specified by the [Principal Commissioner or Commissioner, as the case may be]. The said Rule speaks about situation wherein duty paid goods are brought into factory for refine, reconditioned or for any other reason. In the present case, the goods ar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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