2015 (10) TMI 282

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....sibility of CENVAT credit on the Trolleys falling under Chapter 87 of the Central Excise Tariff Act, 1985 which are used for carrying components from one part of the assembly line of the AC to another part of the assembly line.  Learned Advocate argued that Trolleys used in the assembly line are essential part of the manufacturing activity and CENVAT credit will be admissible in view of the Larger Bench decision in the case of Banco Products (India) Limited vs. CCE, Vadodara [2009 (235) ELT 636 (Tri. LB)].  He made the Bench go through Para-5, 24 and 25 of the Larger Bench judgment to argue that Trolleys used by the appellant are comparable to Plastic Crates for which Larger Bench judgment decided the issue.  That it has been....

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.... the assembly line to another part of the assembly line or the place to and from where assembly of goods is taking place.  It has been held by the Larger Bench in the case of Banco Products (India) Limited vs. CCE, Vadodara (supra) that credit of Plastic Crates used for handling of materials within the factory is admissible for credit under Rule 2 (b) of the Cenvat Credit Rules, 2002 presently Rule 2(a) of Cenvat Credit Rules, 2004.  Para-5, 24 and 25 of this case law are relevant and are reproduced as follow:- 5. Admittedly, the plastic crates are not covered by Sr.No.(i) and (ii) of the above definition. The claim is under Sr.No. (iii), as accessories of the goods specified at Sr.No. (i). As such, only question required to be d....

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....ucts are required to be stored in a bonded store room. The plastic crates are again used for such transportation. As such, we are of the view that the plastic crates would also be eligible for modvat credit as input. 25. In view of our foregoing discussion, we answer the referred question as under : Modvat credit is available on the plastic crates used as material handling equipment in the factory premises as capital goods as also as input. 5. The Hon'ble Madras High Court in the case of P.K.P.N. Shipping Mills (P) Limited (supra) has also held that credit of Plastic Crates is admissible.  The nature of function attributable to the Plastic Crates and Trolleys used by the appellant are the same.  The case law Commissioner of....