TaxTMI 
TaxTMI 
2012 (5) TMI 323
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....y of inadmissible cenvat credit amounting to Rs.50,65,946/- from the appellants under Rule 14 of Cenvat Credit Rules, 2004 read with the proviso to Section 11A(1) of the Central Excise Act, 1944. The adjudicating authority also ordered recovery of interest on wrongly availed cenvat credit and imposed penalty of equal amount on the appellant under Rule 15 of Cenvat Credit Rules, 2004 and Rule 25 of Central Excise Rules, 2002 read with Section 11AC of the Central Excise Act, 1944. 2. The appellant was engaged in the manufacture of two wheelers falling under Chapter 87 of the Central Excise Tariff Act, 1985 and was availing cenvat credit facilities in respect of tool kits and medical kits sold along with two wheelers. During the cour....
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....along with two wheelers fall within the ambit of the definition of input as given in Rule 2(k) of Cenvat Credit Rules, 2002. Learned Counsel submitted that as per the definition of input given in Section 2(k) (i) , input means the goods used in or relation to the manufacture of final product and includes the accessories of the final product cleared along with final product. Learned Counsel argued that Section 138 of Central Motor Vehicle Rules, 1999 as amended makes it mandatory that every vehicle cleared by the manufacturer must carry set of tool kit and first aid kit. Therefore, the tool kits and first aid kits are accessories sold along with two wheelers to meet the requirement of Rule 138 of Central Motor Vehicle Rules, 1999. Thus, thes....
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....d perused the record. The issue for determination in this appeal is whether or not the tool kit and first aid kit indisputably sold by the appellant along with motorcycle fall within the purview of the definition of input eligible for cenvat credit. 7. In order to find answer to the aforesaid question, it is necessary to have a look on the Cenvat Credit Rules, 2004. Rule 3 of Cenvat Credit Rules, provides that a manufacturer or producer of final product shall be allowed to take cenvat credit on the excise duty or additional excise duty paid on any input or capital goods received in the factory for manufacture of final products. 8. Input has been defined in Rule 2(k)(i) which reads thus all goods, except light diesel oil,....
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....ntrimide BP, in anon-greasy base, sterilized dressings, sterilized elastic plaster, waterproof plaster, gauze and elastic bandage for wounds and burns. Since carrying of the tool kit and first aid kit in the vehicle is obligatory for the driver, it can be safely inferred that tool kit and first aid kit are necessary accessories of the motor vehicle because driving of the vehicle without those accessories would be violative of Rule 138 of Central Motor Vehicle Rules, 1989. Thus, we are of the view that the appellant had supplied the tool kit and first aid kit to the buyers as per statutory requirements under Central Motor Vehicle Rules, 1989 as accessories to be used in relation to the manufacture of vehicle. Thus, both tool kit and first ai....