TMI Blog2019 (2) TMI 861X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. Further in the case of CCE vs. Insulation Electrical (P) Ltd. [2008 (3) TMI 22 - SUPREME COURT], 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 which the whole system cannot function. Credit allowed - appeal allowed - decided in favor of appellant. - E/21384/2018-SM, E/21250/2018-SM - Final Order No. 20160-20161/2019 - Dated:- 14-2-2019 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om their buyers. As it appeared that these HDPE pipes were only optional requirement and are not essential for the functioning of the goods manufactured, two show cause notices covering the period and amounts mentioned above were issued to the appellants for contravention of the provisions of sub-rule (k) of Rule 2 of CCR inasmuch as they had irregularly availed the CENVAT credit. The original authority vide the impugned orders confirmed the demand in terms of Rule 14 of CCR read with Section 11A of Central Excise Act, 1944. Besides, they demanded interest under Rule 14 of CCR read with Section 11A of the Act and imposed penalty as detailed above, under Rule 15 of CCR for irregular availment of CENVAT credit. Aggrieved by the Order-in-Ori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the parties and perusal of the material, I find that the HDPE pipes are supplied along with the FO integrated system and the excise duty is also paid on the same. Further, I find that in the absence of HDPE pipes, the final product of the appellant is not functional. Here it is relevant to reproduce the definition of input as contained in Rule 2(k) of CCR, which is reproduced herein below: Rule (k) input means- (i) all goods, except light diesel oil, high speed diesel oil and motor spirit, commonly known as petrol, used in or in relation to the manufacture of final products whether directly or indirectly and whether contained in the final product or not and includes lubricating oils, greases, cutting oils, coolants, accessories of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 (329) ELT 930 (Tri.-Del.) CCE vs. Insulation Electrical (P) Ltd.: 2008 (224) ELT 512 (SC) CCE vs. KEC International Ltd.: 2016 (335) ELT 344 (Tri.-Mum.) Asian Colour Coated Ispat Ltd. vs. CCE: 2015 9317) ELT 538 (Tri.-Del.) 7.3 Further, I find in the case of CCE, Delhi vs. Hero Honda Motors Ltd. (supra), it has been held in para 2 as under: 2. We find that the CESTAT order allowing CENVAT credit in respect of tool kit in respect of M/s. Hero Motocorp Ltd. (supra) has not been set aside by any competent Court. It is not disputed that all three impugned items are cleared along with the motor cycle and the value thereof is included in the assessable value of the motor cycle. The Punjab Haryana High Court in it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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