TaxTMI 
TaxTMI 
TaxTMI 
2018 (12) TMI 548
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....iod August 2012 to November 2014 they had cleared Induction Starter Packs (ISP) as combination package in which pressure cooker manufactured by the appellants was packed along with Tawa manufactured and supplied by M/s. Triveni Bialetti Industries P. Ltd. (hereinafter referred to as 'M/s. Triveni') on job work basis. 2.1 The appellants were discharging duty on the combo-package which contained the pressure cooker and Tawa, on which MRP was affixed. The Department entertained a doubt that the Tawas being cleared without payment of duty amounted to trading activity which, being an exempted service, the CENVAT Credit availed by them on common inputs and input services without maintaining separate accounts is irregular i.e., in contravention o....
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....ufacturer) is not eligible to take credit of the inputs used for the manufacture of Tawa. 3.2 He argued that as per the definition of inputs, it is not necessary that the inputs should form part of the final product cleared by the manufacturer. The allegation that when the Tawa is cleared as a combo-package along with pressure cooker without indicating the MRP it becomes a trading activity, is incorrect. The assessable value of the pressure cooker in such a scheme takes in the cost incurred for the manufacture and clearance of Tawas. Therefore, the appellant has rightly discharged the duty on the pressure cooker and, the credit availed was in order. 3.3 It was also argued by him that the Department had seriously erred in holding that the ....
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....quently sold by the appellant to dealers as part of their promotion scheme and therefore, this is pure trading of goods. 8. The Department does not dispute that M/s. Triveni is a job work manufacturer of the appellant. It is also not disputed that the appellant has supplied the raw materials for the manufacture of Tawa to the job worker. The duty on the Tawa has been discharged by the job worker. Merely because the Tawas are supplied by the job worker to the appellant and then cleared to the customer, the Department has taken the view that the clearance of Tawa is a pure trading activity. It has to be noted that inputs for manufacture of Tawa has been supplied by the appellant herein. So also the job work charges are paid as conversion cha....
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....ultimately suffered the duty as a whole, therefore in my considered view the playing cards which is supplied along with final product should be eligible for input credit. The definition of input also clearly suggests that the input need not to be used directly in the manufacture and also not required to be contained in the final product but if it is used even in relation to the final product credit should be allowed. In the present case the playing cards indeed supplied alongwith final product it fulfilled the criteria of inputs, therefore credit cannot be denied of the duty paid on playing cards. Though there are contrary judgments on this issue but comparing the judgments of both the sides, I find that Tribunal's Single and Division Bench....