TaxTMI 
TaxTMI 
2024 (12) TMI 1360
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....to 14.11.2009 and on the basis of audit report, two Show Cause Notices one dated 25.08.2011,covering the period August 2006 to March 2011, seeking to deny credit Rs. 11,18,93,459 and another dated 30.04.2012, for the period April 2011 to March 2012, proposing to deny credit of Rs 6,49,40,448, were issued on the ground that the bought-out items do not qualify as inputs under Rule 2(k) of the Credit Rules, as they are stored at the gate only and no manufacturing activity is carried out on them; both the SCNs were adjudicated vide the common Impugned Order wherein the Learned Commissioner dropped the entire demand proposed in the SCNs on the ground that the goods in dispute are used in or in relation to the manufacture of their final products and are thus, eligible to CENVAT credit. Revenue is in appeal against dropping of demand of Rs. 2,10,54,368/- on the grounds that the same has been dropped without discussing and giving any findings on their admissibility to credit. 3. Learned Counsel for the Respondents submits that the dispute involves items i.e. Bolt, Screw, nut, Lock Washer, Washer, washer Clip; Manual (Audio), R/Con Audio, NS, Swit....
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....y been included in the assessable value of the final product; for the subsequent period, the Respondent was allowed to take credit of the Impugned goods; no appeal has been filed by the Department against the said order; as the department accepted that order, the said order has attained finality; the department cannot take contrary stands in proceedings on the same issue, for the same assessee, as held in the following. • CCE, Pune-IIVs SS Engineers 2023 (386) ELT 192 (S.C.) • Rosmerta Technologies Ltd Vs CCE 2020TIOL-916- CESTAT-CHD affirmed by Supreme Court vide order dt. 10.07.2023 • SRF Ltd Vs CCE&ST 2021-TIOL-523CESTAT-DEL. • Carrier Air Conditioning and Refrigeration Ltd Vs CCE, Delhi-lll, Excise Appeal No. 2929 of 2009 5. Learned Counsel for the respondents explains the use of impugned items and submits further that the department denied the credit on the ground that the items did not enter the assembly line or production area or that the items were not fitted in the vehicles till the clearance of factory; there is no condition that the inputs must enter the production area or assembly line; Rule 2(k) of ....
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....ansaction. He relies on • Siddhartha Tubes Ltd Vs Commissioner, 2006 (193) ELT 3 (SC.) • Hical India Pvt. Ltd Vs CCE, Bangalore, 2020 (40) GSTL 465 (Tri.-Bang). • Honda Motorcycles & Scooter India P. Ltd Vs CCE, Delhi-III 2012 (282) ELT 533 (Tri. -Del.) affirmed by Hon'ble Punjab & Haryana High Court in CCE, Delhi-III • Honda Motorcycles & Scooter India P Ltd, 2014 (303) ELT 193 (P&H) • Honda Motorcycle & Scooter India P Ltd Vs CCE, Delhi-III, 2012 (286) ELT 110 (Tri. -Del.) affirmed by Hon'ble Punjab & Haryana High Court 2014 (303) ELT A53 (P&H) 7. Learned Counsel for the respondents submits that the demand raised vide Show Cause Notice dated 25.08.2011 is time barred; there has been no suppression by the Respondent as department disputed the credit on some items like set of two spare bulbs, warning triangle & first aid kit vide SCN dated 23.09.2003, which was dropped vide Order-in-Original No. 27/2004 dated 31.08.2004; department was aware of the facts relating to the Impugned goods; further respondents vide letter dated 12.09.2002, informed that they are availing CENVAT credit on bulb, w....
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....uestion has to be separately examined as whether the same is an accessory or not, to qualify as input under the above definition prior to 1.3.2011; in case the same is an accessory, it qualifies as input when cleared along with the final product; item wise details submitted by the respondents, make it clear that certain items are parts of the final product of the respondents. He submits that the adjudicating authority dropped the proceedings initiated without passing the reasoned and speaking order; the Adjudicating Authority has discussed about the admissibility of CENVAT Credit on Warning Triangle, First Aid Kit, Spare Bulbs; Carpet Set, Wheel cover, Cigar Lighter, Car Radio Antenna, Fire extinguisher; Wheel cap, carpet, Mirror Assembly and held that CENVAT Credit on these items are admissible to the respondent and dropped the entire demand of Rs. 17,68,33,907, without discussing and giving any findings, as to whether these items could be termed as inputs, parts or accessories and are used in or in relation to the manufacture of the final products, in respect of remaining items mentioned in the appeal. 10. Learned Authorized Representative for the department submits....
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.... CCE Vs Appollo Tyres Ltd.- 2010 (259) ΕLT194 (Ker.) • Yamuna Gases and Chemicals Ltd Vs CCE, Panchkula-2014 (310) ELΤ 502 (P & H) 12. Learned Authorized Representative for department submits that the cases relied upon by the respondent are not applicable to the facts of the impugned case. 13. In reply, learned Counsel for the respondents submits that the argument put forth by the Learned Authorized Representative referring to the invoices is beyond the Show Cause Notice, impugner order and the grounds of appeal. It is not open for the Learned Authorized Representative to establish a new case at this juncture. The grounds of appeal challenge the dropping of demand of Rs 2.10 Cr on particular items mentioned therein on the grounds that the adjudicating authority did not give any findings. 14. Heard both sides and perused the records of the case. Admissibility of CENVAT credit on certain bought out items purchased by the respondent and supplied along with the vehicles is the precise issue involved in this case. It is the case of the Department that the learned Commissioner, vide impugned order, has not given any specific f....
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.... (b) any goods including accessories, cleared along with the final product, the value of which is included in the value of the final product and goods used for providing free warranty for final products; or (c) all goods used for generation of electricity or steam (or pumping of water) for captive use; or (d) all goods used for providing any (output service); or (e) all capital goods which have a value up to ten thousand rupees per piece, but excludes - (A) light diesel oil, high speed diesel oil or motor spirit, commonly known as petrol; (B) any goods used for- (a) construction or execution of works contract of a building or a civil structure or a part thereof; or (b) laying of foundation or making of structures for support of capital goods, except for the provision of service portion in the execution of a works contract or construction service as listed under clause (b) of Section 66E of the Act; (C) capital goods, except when, - (i) used as parts or components in the manufacture of a final product; or (ii) the value of such capital goods is up to ten thousand rupees per....
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....al Excise duty has been paid. Accordingly, learned Commissioner rightly finds that the impugned items are either parts or accessories and therefore, credit is admissible before 01.03.2011 or after 01.03.2011. Authorized Representative for the Revenue tried to explain during the hearing on the basis of a sample invoice that the value of the impugned accessories is not included in the assessable value of the motor vehicles. We find that this submission is beyond the scope of the show cause notice and the grounds of appeal. Revenue's appeal is very clear that it is only on the grounds that learned Commissioner (Appeals) has not given any findings as to the impugned goods vis-à-vis their admissibility to CENVAT credit. Therefore, we find that it is not open for the Revenue to set up a new case at this juncture. 18. We further find that the goods in question are Bolt, Screw, nut, Lock Washer, Washer, washer Clip; Manual (Audio), R/Con Audio, NS, Switch, Audio; Acc. Socket, Assy, Body Socket; Top Deck Assy; Frame Top Bow front, Cushion top Bow; Pipe Rear; Cover Spare Tyre; Set, ORVM & MTG Screw and Spot Light, Tag Cup Holder. We find that learned Commission....