2014 (7) TMI 1229

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....r the Respondent. ORDER The present appeal has been filed by the appellant against the impugned order dated 13-1-2011, wherein Cenvat credit on steel racks (termed as 'pallets') has been denied on the ground that the disputed goods, by nature of their use, neither qualify as inputs nor capital goods for the appellant, in order to take the benefit of Cenvat credit. 2. The appellant he....

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....roduct are properly stored, the same will be considered as adulterated goods as mandated in the above Act. The learned counsel further submitted that in absence of proper packing, the finished goods will not be in a marketable state; hence the disputed goods will qualify as input for the purpose of taking Cenvat credit thereon. The learned counsel also submitted that the proceedings are barred by ....

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....ng the nature of product, the Prevention of Food Adulteration Act specifically provides that manufacturers of food articles must prepare, pack and keep such articles under sanitary conditions to prevent them from contamination, which is injurious to the human health. Further, on perusal of the definition of 'input', it reveals that it is not necessary to prove that the goods should be used in or i....

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....served and the confectionery goods will not be in a position to meet the market requirement/specification. Thus, such storage equipments are very much essential in the ultimate manufacture of goods and as such, will qualify as 'input' for the purpose of taking Cenvat credit. 6. I further observe that the show cause proceedings have been initiated by invoking the extended period of limitati....