2014 (3) TMI 662

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....f duty and the appellants had taken Cenvat credit amounting to Rs. 6,92,948/- during the period March 2004 to July 2006. 2. The view of the Revenue was that the credit was not available as per the definition of capital goods. On adjudication, the demand was confirmed and the amount already debited was appropriated. Commissioner (Appeals) in his order found that there was no case on merits and it was not a case of interpretation of law. He dismissed the appeal filed by the assessee. 3. I have gone through the facts of the case and various judgments on the issue. The basic issue to be decided is whether the racks being used by the appellants are covered by the definition of "capital goods" or not. The definition of capital goods u....

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....g machine and also the finished goods from the machine to storage area and therefore not capital goods. Nevertheless, the plastic crates were also being used at the stage prior to the completion of the manufacturing process of the finished goods. In that case the plastic crates were held to be an accessory of machines falling under Clause (i) & (ii) of the definition of capital goods. 5. The order of the Commissioner (Appeals) on this point lacks any legal inviolability. Tribunal in the order (supra) has clearly held as follows : "The plastic crates are used for transporting/storing of the goods in the factory of production. Proper storage of inputs is essential for efficient manufacturing process and in absence of proper facilities ....