2013 (1) TMI 612

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....ng with two wheelers. During the course of audit conducted by the internal audit on 11-11-2008 and 14-11-2008 it was noticed that the appellants had availed Cenvat credit on the tool/first aid kits during the year 2004-09 & 2010-11. The Department was of the view that the appellant had wrongly taken Cenvat credit as the tool/first aid kits were neither inputs of two wheelers essential for its functioning nor the accessories helping in its better performance. Accordingly, two show cause notices respectively dated 4-8-2010 and 27-7-2011 were issued to the appellants proposing recovery of Cenvat credit availed by him on tool/first aid kits for the periods 2004-09 and 2010-11. The total amount of Cenvat credit involved in those notices was Rs. ....

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....e Rules, 1989 as amended makes it mandatory that every vehicle cleared by the manufacturer must carry set of tool/first aid kits. Therefore, the tool/first aid kits are accessories sold along with two wheelers to meet the requirement of Rule 138 of Central Motor Vehicle Rules, 1989. Thus, these inputs entitle the appellants to claim Cenvat credit in respect of expenses incurred on tool/first aid kits in view of Rule 3(i) of Cenvat Credit Rules, 2002. 6. Learned counsel for the appellant has thus concluded that the appellant has correctly availed the Cenvat credit on tool/first aid kits and strongly urged for setting aside the impugned order. In support of his contention, he has relied upon the various decisions of the Tribunal namel....

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....inal 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. 10. 'Input' has been defined in Rule 2(k)(i) which reads thus - "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 the final products cleared along with the final product, goods used as paint, or as packing material, or as fuel, or for generation of electricity or steam used i....