Vst Industries Ltd vs Commissioner Of Central Excise, ...

[Arising out of Order-in-Appeal No. 25-2012 dated 21/05/2012 passed by Commissioner of Customs, Excise & Service Tax (Appeals-II) Hyderabad]

[Arising out of Order-in-Appeal No. 15-2013 dated 24/09/2013 passed by Commissioner of Customs, Excise & Service Tax (Appeals-II) Hyderabad]

[Arising out of Order-in-Appeal No. 05-2014 dated 21/07/2014 passed by Commissioner of Customs, Excise & Service Tax (Appeals-II) Hyderabad]

For approval and signature:

HON'BLE SMT ARCHANA WADHWA, JUDICIAL MEMBER HON'BLE SHRI ASHOK KUMAR ARYA, TECHNICAL MEMBER

1 Whether Press Reporters may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982? No 2 Whether it should 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? Seen 4 Whether Order is to be circulated to the Departmental authorities? Yes

Vst Industries Ltd Azamabad HYDERABAD - 500020 AP Appellant(s)

Versus

Commissioner of Central Excise, Customs and Service Tax HYDERABAD-II L.B STADIUM ROAD, BASHEERBAGH, HYDERABAD, - 500004 ANDHRA PRADESH Respondent(s)

Appearance:

Ms. L.Maithili, Adv CENTURY COURT,8/1, GROUND FLOOR, 2ND STREET.

CHENNAI - 600086 TAMILNADU For the Appellant

Mr. N. Jagadish, A.R. For the Respondent

Date of Hearing: 06/08/2015

Date of Decision: 06/08/2015

CORAM:

HON'BLE SMT ARCHANA WADHWA, JUDICIAL MEMBER HON'BLE SHRI ASHOK KUMAR ARYA, TECHNICAL MEMBER

Final Order No. 21778-21780 / 2015

Per : ARCHANA WADHWA

The issue involved in all the three appeals is identical and as such are being disposed of by a common order.

2. After hearing both sides, we find that the appellants who are engaged in the manufacture of cigarettes have availed CENVAT credit of duty paid on the imported pheromone traps which are used in their factory for controlling beetle infestation. Both sides agree that an identical issue was the subject matter of the earlier appeal of the same appellant and vide Final order No. 21190/2015 dated 27.3.2015 it was held as under:-

5. As seen from above, the traps in question are required to be used for avoiding the attack by the tobacco beetles. If the same are not used, raw materials as also the final products are likely to be damaged, in which case, they would not be in a position to be cleared. The items in question, may not be strictly covered by the definition of capital goods but admittedly they are required to be used for manufacture of final product and as such can be considered as inputs. The Honble Karnataka High court in the case of Rane (Madras) Ltd Vs CCE Bangalore [2009(236)ELT 33 (Kar) has allowed the CENVAT credit on universal measuring machine used by the assessee for measurement of jigs, fixtures and gauges which are intended for manufacture of intermediary products as well as measuring some of the final products. It is well settled law that where a particular process is integrally connected with the ultimate production of the goods, but for that process, manufacture of goods would be commercially inexpedient, articles required in that process would be considered as having been used in the manufacture of goods. It is nobodys case that tobacco beetle is required to be managed and if not managed the production of cigarettes cannot take place commercially, though theoretically it may be possible to do so. As such anything used for managing the tobacco beetle infestation is required to be considered as an input having been used in relation to manufacture of final products. Accordingly I am of the view that the items used for controlling the said beetle have to be considered as eligible cenvatable inputs.

3. By following the said decision of the Tribunal, we set aside the impugned orders in the present appeals also and allow all the three appeals with consequential relief to the appellants. (Order pronounced in open court)

ASHOK KUMAR ARYA TECHNICAL MEMBER ARCHANA WADHWA JUDICIAL MEMBER

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