2012 (5) TMI 249

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....cturers of spray gun and spares falling under chapter 84 of the CETA, 1985. As a market gimmick, along with spray guns they supply playing cards as free gift. They procure the playing cards on payment of excise duty. They have taken the CENVAT credit of the excise duty paid on the playing cards while discharging the excise duty liability on the spray guns. It is their contention that the cost of playing cards is included in the assessable value of the spray guns even though they have claimed that playing cards are supplied free. The department is of the view that the playing cards are neither 'inputs' or 'input service' and therefore CENVAT credit of the duty paid on playing cards is inadmissible under the CENVAT credit Rules, 2004. Accordi....

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....ered as an input as they are not required for the manufacture of spray guns. Therefore, they cannot be considered as inputs. Since playing cards are goods they cannot be considered as input services either. Therefore, the question of availing CENVAT credit on an item which is neither an input nor an input service is not permissible under the law. 5. I have carefully considered the rival submissions. In the instant case, playing cards are supplied as a gift while selling spray guns by the appellant. They are not required for the manufacture of spray guns nor are they accessories to spray guns. As per rule 2(k) of the CENVAT Credit Rules, 2004, input means - "(k) "input" means - (i) All goods, except light diesel oil, high speed dies....