2005 (1) TMI 290

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....visions of law in the light of the Apex Court judgment rendered in the case of Mehra Brothers v. Joint Commercial Officer [1991 (51) E.L.T. 173] has found that the plastic crates are necessary for the purpose of holding capacitors and resisters and they have to be treated as accessories or parts of machinery. The finding recorded by the Commissioner in paras 5 to 8 are reproduced herein below. "5. I have gone through the grounds of appeal, the submissions made at the time of hearing and all other evidence on record. From the facts stated above it is seen that the appellants have received plastic crates in the factory on payment of duty of excise. They have taken credit to the extent of 50% of the duty paid as capital goods credit. The ca....

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.... piece of equipment without changing its basic function, may be used for testing, adjusting, celebrating, recording or other purposes." The term accessory also came up for interpretation before the Supreme Court in the case of Mehra Brothers v. Joint Commercial Officer [1991(51) E.L.T. 173 (S.C.)]. In this context, it is necessary to refer to para 3 and 4 of the judgment, which reads as - 3. We find that the accessories used in the schedule to describe goods which may have been manufactured for use as an aid or addition. A sense in which the word accessory is used is given in Webster New International Dictionary as an object or device that is not essential in itself but that adds to the beauty, convenience or effectiveness of somethin....

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....mething of greater or primary importance which assists in operating or controlling or may serve as aid are accessories. Thus a machinery may function without an accessory but the accessory adds to the convenience or its effectiveness. In the present case, it is seen that various machineries, namely, welding machines, capping machines, tapping machines, winding machines etc., are used for manufacture of capacitors and resistors. No doubt plastic crates, by themselves are not used for manufacture of capacitors and resistors. However, the plastic crates add to the convenience for collecting machine outputs and shifting to the next stage of production. Therefore, these plastic crates no doubt act to the convenience or its effectiveness and serv....