Central Excise credit eligibility for tool-kit and jack assembly cannot vary with State motor vehicle rules.

Central Excise credit eligibility must be determined under the Central enactment, and its interpretation cannot vary because a State motor vehicle rule makes supply of a tool-kit and jack assembly mandatory. The Tribunal held that Maharashtra's requirement did not change the character of those items for Central Excise purposes or create a separate credit position for that State. The tool-kit and jack assembly were therefore not treated as inputs eligible for credit, and the denial of credit was upheld.

---

---

Issues: Whether tool-kit and jack assembly supplied with motor cars were eligible as inputs for credit under the Central Excise scheme when their supply was mandatory only under the Maharashtra Motor Vehicles Rules.

Analysis: The Tribunal held that Central Excise law is a Central enactment applicable throughout India and its interpretation cannot vary according to the requirements of a particular State's motor vehicle rules. The fact that Maharashtra law required mandatory supply of a tool-kit and jack assembly did not alter the character of those items under the Central Excise law or make the credit position different for that State alone.

Conclusion: The tool-kit and jack assembly were not treated as inputs for credit purposes, and the order denying credit was upheld.

---