TaxTMI 
TaxTMI 
2007 (10) TMI 211
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....vailed Cenvat credit on plastic crates, which is inadmissible since the crates are not used in or in relation to manufacture of their final products. The adjudicating authority confirmed the demand on the ground that the plastic crates were used by the assessee for storing raw materials, which has no relation to the manufacture of the final products. On an appeal, the Commissioner (Appeals) dismissed the appeal of the appellants on the ground that the plastic crates were neither integrally connected with the manufacturing process, nor the value appears to have been included in the value of final products but they are used for convenient transportation of the finished goods. 3. The ld. Advocate appearing on behalf of the appellant sub....
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....nished products, the same were brought back to the factory for reuse. It is his contention that the said allegation was in the show cause notice and the appellants have not refuted the said allegation. It is his submission that the finding of the Commissioner (Appeals) is correct and does not require any interference. 5. Considered the submission made by both sides at length. The appellants in their reply to show cause notice have submitted. as under: - "The plastic crates are used for storing/transportation of the goods in stores/factory of production. Proper storage of inputs is very essential for efficient manufacturing process. Unless the inputs are stored in separate crates as per their specifications, part numbers, usage etc., they ....
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....e neither inputs nor packing material and also not used in or in relation to manufacture of final products." It is seen from the above reproduced reply of the appellants as well as the findings of the adjudicating authority, that lower authority has denied the credit only on the ground that the plastic crates were used by the assessee for storing the raw materials, as it, cannot be said in relation to the manufacture of final products. 6. I find that the issue is settled in favour of the appellant by the judgment of the Hon'ble Supreme Court in the case of Collector of Central Excise v. solaris Chemitech Ltd. - 2007 (214) E.L.T. 481 (S.C.), wherein the Apex Court has held that "the words "in relation to" which find place in Section ....