HITACHI LIFE AND SOLUTION INDIA LIMITED Vs. COMMISSIONER OF CENTRAL EXCISE & S.T.
LAWS(CE)-2015-7-53
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
Decided on July 14,2015

Hitachi Life And Solution India Limited Appellant
VERSUS
Commissioner of Central Excise And S.T. Respondents


Referred Judgements :-

COMMISSIONER OF PONDICHERRY VS. MOHAN BREWERIES LIMITED [REFERRED TO]
BANCO PRODUCTS (INDIA) LTD VS. OFFICIAL LIQUIDATOR [REFERRED TO]


JUDGEMENT

H.K.THAKUR - (1.)THIS appeal has been filed by the appellant against OIA No. 42 -2013 -AHD -III -SKS -COMMR -A -AHD dated 15.03.2013 issued on 18.03.2013.
(2.)Shri S.J. Vyas, (Advocate) appearing on behalf of the appellant argued that the issue involved in this proceedings is admissibility of CENVAT credit on the Trolleys falling under Chapter 87 of the Central Excise Tariff Act, 1985 which are used for carrying components from one part of the assembly line of the AC to another part of the assembly line. Learned Advocate argued that Trolleys used in the assembly line are essential part of the manufacturing activity and CENVAT credit will be admissible in view of the Larger Bench decision in the case of Banco Products (India) Limited vs. CCE, Vadodara [2009 (235) ELT 636 (Tri. LB)]. He made the Bench go through Para -5, 24 and 25 of the Larger Bench judgment to argue that Trolleys used by the appellant are comparable to Plastic Crates for which Larger Bench judgment decided the issue. That it has been held by the Larger Bench that Plastic Crates used between material handling equipment in the factory premises as capital goods are eligible to cenvat credit as inputs. Learned Advocate further relied upon the case law of PKPN Shipping Mills (P) Limited [2015 (316) ELT A160 (Mad.)]. It was his case that the Madras High Court relying upon the Larger Bench judgment in the case of Banco Products (India) Limited vs. CCE, Vadodara (supra), held that CENVAT credit of duty paid on Plastic Crates is admissible.
(3.)SHRI T.K. Sikdar (AR) appearing on behalf of the Revenue argued that Trolleys used by the appellant for carrying components in the assembly line of the ACs are classifiable under Chapter 87 of Central Excise Tariff Act, 1985 and can neither be said to classified as capital goods nor inputs. That Hon'ble High Court in the case of Commissioner of Pondicherry vs. Mohan Breweries Limited [2010 (259) ELT 176 (Mad.)], relied upon by the first appellate authority, has held that Steels plates and M.S. Channels used for fabrication of Chimney cannot be entitled to modvat credit.
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