The Cenvat Credit on plastic crates were used for safe transportation of finished goods is allowable even it is not being used in or in relation to the manufacture of final products
CCE, Noida Vs. Denso India Ltd. & Another [2014 (9) TMI 635 – Allahabad High Court]
Denso India Ltd. & Another (the Respondent) was engaged in the manufacture of Auto Electric Parts falling under Chapter 85 of Central Excise Tariff Act, 1985 (the Excise Tariff Act). The Respondent had availed Cenvat credit on plastic crates used for the packing material of the final products.
The Adjudicating Officer refused to allow the claim of the Respondent by observing that plastic crates are not being used in or in relation to the manufacture of final products and hence not entitled for Cenvat credit.
However, both the Appellate Authorities allowed the claim of Cenvat Credit of Rs. 4,96,015/-. The revenue filed an appeal before the Hon’ble Allahabad High Court.
The Hon’ble Allahabad High Court held that plastic crates were being used for the safe transportation of the finished goods from the place of the manufacture to the place of consignee and the cost of plastic crates is included on pro-rata basis in the assessable value of the finished excisable goods on which duty was being discharged. Further, it was observed that the Department had also allowed Cenvat Credit of packing material in earlier Assessment year to the Respondent. Therefore, the order passed by the Appellate authority was upheld.
Author Bio
Dear Sir,
Cenvat Credit on Plastic Credit shall be taken under inputs or Capital goods,
plz advise
Thanks with regds,
M Murugan