TaxTMI 
TaxTMI 
2017 (12) TMI 1149
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....ppellant used the said steel goods for making storage racks, which in turn used for storage of raw material and finished goods. The storage is one of the vital part of the overall manufacturing of the finished goods, hence the storage racks are used directly in or in relation to the manufacture. She submits, identical issue has been decided in various following judgments: (a) Banco Products (India) Ltd Vs. Commissioner[2009(235)ELT 636(Tri. LB.)] (b) Commissioner of C. Ex. PUneI Vs. Sonai Engineering Pvt Ltd[2010(253)ELT 806(Tri. Mum)] (c) Kosi Plast P Ltd Vs. Commissioner[2011(271)ELT 93(Tri. Mum)] (d) Lear Automotive India Ltd Vs. Commissionerof C. Ex. VadodarII[2013(291)ELT 411(Tri. Ahmd)] (e)....
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....ng process and in absence of proper facilities for storage and transportation; the same will affect the manufacturing process. Further, the Hon'ble Supreme Court in the case of M/s. Rajasthan State Chemical Works has observed that the manufacturing process starts with the drawing of water from the reservoir. By applying the same fact, it can be safely concluded that the manufacturing process starts with the issuance of the inputs from the stores and their further transportation to the production platform is only a part of the process of manufacture integrally related to the final production. In absence of the delivery of the raw material to the manufacturing platform, the process cannot start. Such delivery of the goods includes transpo....
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....ppeal, the same is rejected. Kosi Plast P Ltd (Supra) 6. On careful examination of the submissions made by both sides, the short issue before me is that whether the appellants are entitled for availment of CENVAT credit on MS slotted racks which are being used for storing the raw material or not. The contention of the ld. DR is that these MS slotted racks are neither input as per the definition of Rule 2(k) of CENVAT Credit Rules, 2004, as these racks do not form the part of the final product. He further submitted that these racks cannot be said to be a component spares and accessories of the capital goods as per the definition of Rule 2A of capital goods. He further relied on Mehra Brothers (supra) wherein the Hon'ble....
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....terial and as held by this Tribunal in the case of Sonai Engineering that storage system being used for storing raw material by the assessee is an integral part of the activity of manufacturing and is directly or indirectly involved in the process of manufacturing. It is not disputed that these racks are not being used for storage and raw material. Therefore, the appellants are entitled for CENVAT credit on these MS slotted racks as they are being used for storage of raw material which is an integral part of the activity of manufacture and is involved in the process of manufacture. Therefore by setting aside the impugned order, the appeal is allowed with consequential relief, if any. Lear Automotive India Ltd(Supra) 6. I h....