TaxTMI 
TaxTMI 
2015 (9) TMI 1020
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.... together for decision through this common order. S. No. Name of the appellant Appeal No. Order-in-Original No. & date Cenvat credit involved 1 M/s. Shiva Texfab Ltd. (Unit No. I), Vill. Iraq, Machhiwara 101/A/CE/CHD-II/2013 13/AC/RPR/ 2012-13, dated 13-3-2013 Rs. 2,02,838/- 2 M/s. Shiva Texfab Ltd. (Unit No. II), Vill. Iraq, Machhiwara 102/A/CE/CHD-II/2013 14/AC/RPR/ 2012-13, dated 13-3-2013 Rs. 1,11,198/- 2. Briefly stated, the appellants No. I & II are registered under Central Excise Registration No. AACCS0279AXM001 and engaged in the manufacture of goods failing under Chapters 52, 55 & 56 of the Central Excise Tariff Act, 1985. 2.1 The audit of the unit No. I and Unit No. II of the appellants was conducted separately by the internal audit, for the period from January, 2008 to January, 2011, it was observed that they had availed of Cenvat credit on goods namely lubricating oils, grease, articles of plastics, etc. as capital goods whereas the same were alleged to be covered under the definition of inputs as defined under Rule 2(k) of the Cenvat Credit Rules, 2004 (for brevity 'the credit Rules'). It was thus alleged that they were not eligible to take i....
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.... of goods received and receipt and use of goods were not in dispute; iii. that Notification No. 30/2004-C.E., dated 9-7-2004 did not restrict to avail Cenvat credit on input service; further, the capital goods on which credit was taken were used in the manufacture of both dutiable and exempted goods as also admitted by audit hence could not be denied; iv. that the adjudicating authority had erred in holding that Cenvat credit taken by them on lubricating oils/grease, bobbins, plastic crates etc. as capitals goods fell under the definition of inputs; v. that plastic bobbins/tubes purchased were accessories of capital goods and thus eligible for credit under capital goods; that plastic crates were used for shifting of plastic bobbins/tubes wrapped with yarn, etc. and such crates were used for handling, transferring raw material, semi-finished goods in the factory hence were capital goods and relied upon the decision in the case of Banco Products (India) Ltd. v. CCE - 2009 (235) E.L.T. 636 (T) and ACE Glass Containers Ltd. v. CCE - 2010 (250) E.L.T. 110 (T); vi. that lubricating o....
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....e in goods falling under Chapters 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62 or 63 of the First Schedule to the Central Excise Tariff Act, 1985 (1 of 1986), and has more than one premises requiring registration; he may obtain a single registration for all such premises, which fall within the jurisdiction of one Commissioner of Central Excise subject to condition that the such person, while making application in terms of clause (1) of this notification declares the details of all such premises in the form specified in Annexure 1 as given in Part-7." 6.1 The appellants in the instant case are manufacturing excisable goods falling within Chapters 52, 55 and 56 of the Central Excise Tariff Act, 1985. Hence, a single registration had been correctly given for the two premises of the appellants, i.e. one in village Iraq and other in village Bhattian. Accordingly, I would refer to both the units as a single assessee, hereinafter. Any reference to demand, interest and penalty hereinafter, would mean sum total of the demand, interest and penalty raised and confirmed in respect of both the show cause notices issued to Unit No. I and II. 6.2 The above question when answered....
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....of electricity or steam used in or in relation to manufacture of final products or for any other purpose, within the factory of production;' 7.2 Once, the goods in question were specifically covered under the definition of inputs it was not open to the appellants to seek credit of the same under capital goods. The obvious reason for their doing so was that the appellants were working under Notification No. 30/2004-C.E., dated 9-7-2004 and clearing their finished goods without payment of duties of excise, and therefore, they were not entitled to take credit of the duty paid on inputs, in terms of the notification ibid. I also observe that there is no claim of the appellants that they were eligible for the credit on the said goods as inputs. Hence, I hold that Cenvat credit on lubricating oil/grease was not admissible to the appellants and the same has been rightly denied by the adjudicating authority. However, since details of the credit involved on the lubricating oil/grease is not quantified separately in both the appeals cases, the jurisdictional Deputy/Assistant Commissioner, Central Excise Division, Ropar is required to re-compute the demand within 15 days of the receipt ....
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.... to the storage area. It can be argued that instead of using such plastic crates as material handling device, the various components or the inputs can be carried manually also. However, the question is as to whether such transportation of the inputs or semi-finished goods in the factory would be convenient way of dealing, and whether the same would not hamper the continuous working of the machine on account of delays in the delivery of the raw material etc. It may be possible in theory to do so, but is neither practical nor possible to do in the actual manner. The delivery of the raw material in time for increasing the effective working of the same and then removal of the finished goods from the vicinity of the machine contributes may be in a subordinate degree to attain a general result or effect. Same adds to definition of effectiveness of the machinery, and when viewed and judged in the light of interpretation of the term "accessory" by various Courts, the plastic crates are required to be held as accessory only." 8.1 Although the judgment supra have been rendered in respect of plastic crates, yet as observed by me supra, the nature of the utility of both bobbins and plast....