Custom, Excise & Service Tax Tribunal
Cce, Delhi-I vs M/S. Hero Honda Motors Ltd on 17 October, 2014
CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL,
WEST BLOCK NO.II, R.K. PURAM, NEW DELHI-110066.
BENCH-DB
Date of Hearing/Order: 17.10.2014
E/55574/2013-EX[DB]
[Arising out of Order-in-Appeal No. 53-55/SA/CCE/2012 dated 21.08.2012 passed by the Commissioner (Appeals), Central Excise, Delhi-I]
Honble Mr. Justice G. Raghuram, President
Honble Mr. R.K. Singh, Member (Technical)
1.
Whether Press Reporter may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982?
2.
Whether it would be released under Rule 27 of the CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not?
3.
Whether their Lordships wish to see the fair copy of the order?
4.
Whether order is to be circulated to the Department Authorities?
CCE, Delhi-I Appellant
Vs.
M/s. Hero Honda Motors Ltd. Respondent
Present for the Appellant :Shri Pramod Kumar, JCDR
Present for the Respondent:Shri S. Ganesh Sr. & Shri P.K. Ram, Adv.
FINAL ORDER NO. 54214/2014
PER: R.K. Singh
Revenue has filed this appeal against Order-in-Original No. 53-55/SA/CCE/2012 dated 21.08.2012. In terms of the said Order-in-Original the Commissioner has allowed the Cenvat credit in respect of mirror assembly, sari guard and tool kit. The revenue has filed the appeal on the ground that the said items are not used in or in relation the manufacture of the Motor Cycle and therefore are not eligible to be called inputs and hence it is not legal and proper to allow Cenvat credit of duty paid thereon. Revenue has contended that the prior to 01.03.2011 [when the definition of inputs in Rule 2(k) of Cenvat credit Rules 2004 was amended vide Notification No. 3/2011-CE, the impugned goods were not eligible to be call inputs and that the judgment of CESTAT in the case of M/s. Hero Motocorp Ltd. vs. CCE, Delhi III: A/667-672/2012-EX[DB] dated 07.06.2012 has not been accepted by Revenue and against that filling of appeal has been recommended.
2. We find that the CESTAT order allowing Cenvat credit in respect of tool kit in respect of M/s. Hero Motocorp Ltd. (supra) has not been set aside by any competent court. It is not disputed that all three impugned items are cleared alongwith the motor cycle and the value thereof is included in the assessable value of the motor cycle. The Punjab & Haryana High Court in its judgment dated 09.05.2013 in CEA No. 52 of 2012 while allowing Cenvat credit in respect of tool kits and first aid kits to M/s. Honda Motorcycle & Scooter India Pvt. Ltd., inter-alia, observed that the definition of inputs shows that it is inclusive and wide as it is started with the words all goods. The goods excluded are light diesel coil and high speed diesel coil and motor spirit which are in the nature of consumables. The High Court went on to add that the final product cannot be given restricted meaning so as to mean as the engine of the vehicle or the chassis but all things which are necessary to make the final product marketable. The Honble High Court held that for motor vehicle, the tool kit and the first aid kit has to the part of the vehicle before the same can be put to use. It is evident that the ratio on which the Cenvat credit has been allowed in respect of tool kit and first and kit is squarely applicable for permitting Cenvat credit in respect of sari guard and rear view mirror assembly.
3. in the light of the forgoing, we do not find any merit in Revenues appeal and the same is therefore dismissed.
(Justice G. Raghuram) President (R.K. SINGH) TECHNICAL MEMBE Neha 3