2017 (3) TMI 637

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....pellant cleared the said saree guards along with the vehicles from its factory and included the cost of the said saree guards in the assessable value of the vehicles on which duty was paid by the appellant. 3.  The Revenue is of the view that the saree guard do not qualify as inputs under the Cenvat Credit Rules, 2004, therefore, the proceedings were initiated against the appellant to deny the cenvat credit on saree guards. By way of the impugned period, the cenvat credit was denied, consequently, the same was demanded along with interest and equivalent amount of penalty was imposed. Aggrieved from the said order, the appellant is before us. 4.  The ld. Counsel for the appellant submits that as per Rule 123 of Central Motor Vehi....

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....ons of the saree guard covering not less than half of the rear wheel so as to prevent the clothes of the person sitting on the pillion from being entangled in the wheel, therefore, without saree guard, the specified item cannot be sold by the appellant as per Note 6 to Section XVII of the Central Excise Tariff Act, 1985. Without saree guard, the vehicle will remain incomplete and the same cannot be said to the finished goods ready for sale. In that circumstances, the appellant is entitled to avail cenvat credit on saree guard in the light of the decision of this Tribunal in their own case (supra), wherein this Tribunal observed as under: 1. Revenue has filed this appeal against Order-in-Original No. 53-55/SA/CCE/2012, dated 21-8-2012. In t....