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TMI Blog2019 (2) TMI 861X X X X Extracts X X X X X X X X Extracts X X X X ..... sal. The details of both the appeals are given herein below: Appeal No. Period Amount E/21384/2018 July 2012 to February 2013 Rs.1,06,790/- E/21250/2018 March 2013 to February 2014 Rs.8,36,548/- 3. Briefly the facts of the present case are that the appellants are engaged in 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 noticed that the appellants were procuring "HDPE Pipes" and were availing the credit of duty paid on such inputs under th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al 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 dispatch invoices and have paid excise duty on HDPE pipes supplied along with the system. 6. On the other hand, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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; 7.1 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 reflected in the invoices produced by the appellant. 7.2 The learned counsel for the appellant in support of his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able". 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." 7.4 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 actual functioning of the product, whereas part is an essential component of the whole without w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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