2008 (5) TMI 218

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....L. Meena, SDR, for the Respondent. [Order] - M/s. Pallipalayam Spinners Pvt. Ltd., (PSL) Erode, was ordered to pay back Rs. 39,197/- availed by them as 50% of the duty paid on plastic crates received between 7/2000 to 10/2003. PSL are engaged in the manufacture of cotton yarn and man made yarn. The impugned plastic crates are used within the mill to transfer the yarn from one section to another....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....chineries were also capital goods irrespective of the classification. The plastic crates in question are used in the mills for transferring various intermediate products to complete the process of manufacture of the final product cotton yarn and man made yarn cleared. Their case was squarely covered by the decision of the Tribunal in CCE, Calicut v. Keltron Component Complex Ltd. (supra). She also....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ase of CCE v. PKPN Spinning Mills (P) Ltd reported in 2005 (192) E.L.T. 541 (Tri.-Chen.), wherein it was held that 'plastic crates' used as material handling equipment could not be treated as input nor the same were capital goods. The ld. SDR prays that the impugned order may be sustained and the appeal filed by PSL be dismissed. In his rejoinder, the Counsel submits that the order of the Tribunal....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....at assists in operation of the particular machinery. The same item may be accessory of more than one kind of instrument. The Court had accepted the meaning of the accessories as an object or device that is not essential in itself but that adds to the beauty or convenience or effectiveness of something else or was a supplementary or secondary to something of greater or primary importance which assi....