TaxTMI 
TaxTMI 
TaxTMI 
2014 (4) TMI 299
X X X X Extracts X X X X
X X X X Extracts X X X X
....laps. The tubes are slightly inflated and the tube and flaps are inserted into tyres. Such tyres with tubes and flaps are cleared to two categories of customers. The first category is Original Equipment Manufacturers (OEMs) and the second category is dealers for replacement of tyres in the vehicles already sold. Proceedings were initiated against Trichur unit which according to learned counsel would help to understand the background better if explained though we are concerned with Cochin unit. While agreeing that tubes and flaps were inputs, demands were proposed to be confirmed on the ground that in some cases such tubes and flaps have been sold at higher price. Since the appellants were bringing these tubes and flaps as inputs in respect ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....that on this ground alone the appeal can be allowed. He also submits that tubes and flaps have to be considered as accessories of the final products, namely tyres and according to the decision in the case of Balakrishna Industries Ltd. vs. Commissioner of Central Excise, Jaipur-I [2007 (217) E.L.T. 228 (Tri.-Del.)], it was held that accessories can be considered as inputs. However, the Commissioner has not followed the decision only on the ground that the judgment has not been accepted and it was ascertained as to whether the department has filed an appeal against the order in the High Court. He submitted that at the time of hearing the stay application also, Revenue could not produce or show whether appeal has been filed. Even today, befor....
X X X X Extracts X X X X
X X X X Extracts X X X X
....al in the case of Trichur unit that tubes and flaps were not inputs. When it was not a case of the department, and when the decision of Hon'ble High Court has already been stayed, it may not be appropriate to consider that issue. Moreover, we also find that the decision of the Tribunal in the case of Balakrishna Industries Ltd. (supra) is squarely applicable to the facts of this case. No evidence has been produced till now that this decision has been appealed against and whether any stay has been granted or not. In the case of Balakrishna Industries Ltd., the Tribunal in paragraph 8 observed as follows :- We agree with the assessee. The tyres in question are not tubeless tyres. They re....