TaxTMI 
TaxTMI 
2013 (6) TMI 6
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....en by the higher courts setting the precedent to follow which has been made the basis to confirm the demand by the Commissioner (Adj), New Delhi? (ii) Whether the Hon'ble Tribunal has correctly interpreted inputs used in relation to manufacture of the final products as appearing in Rule 2(k) of the Cenvat Credit Rules, 2004? (iii) Whether the phrase `inputs used in relation to' the manufacture of final products does not postulates that the input must directly or indirectly participate in the process of manufacture of the goods? (iv) Whether the Hon'ble CESTAT is correct in ignoring earlier rulings of the Tribunal wherein Tool Kits have not been held to be 'inputs' within the meaning of Cenvat Credit Rules, 2004? (v) Whether the Hon'ble ....
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.... learned Tribunal has relied upon a Larger Bench order of the Tribunal reported as 1996 (88) ELT 355 (Tribunal) Bajaj Auto Limited v. Collector of Central Excise, Pune followed later by the Tribunal in a judgment reported as 2007 (207) ELT 600 Bajaj Tempo Limited Vs. Commissioner of Central Excise, Indore to hold that the respondent has supplied tool kits and first aid kits 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 aid kit are covered by the definition of input given under Section 2(k)(i) of the Cenvat Credit Rules. Learned counsel for the appellant has vehemently argued that as per the definition of ....
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.....- Input include goods used in the manufacture of capital goods which are further used in the factory of the manufacture." A reading of the said definition shows that it is inclusive and wide as it is started with the words "all goods". The goods excluded are light diesel oil, high speed oil and motor spirit which are in the nature of consumables. The final product cannot be given restricted meaning so as to mean as the engine of the vehicle or the chassis but all things which are necessary to make the final product marketable. What is excluded is the fuel which is to be consumed for running of the vehicle. All goods which are part of the original equipment are entitled to Cenvat credit as per definition of 2(k)(i) reproduced above. Learn....