BALKRISHNA INDUSTRIES LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) Applicant filed this application for waiver of pre -deposit of duty of Rs. 17,75,883/ - and penalty of Rs. 2 lakhs. In this case the demand is confirmed after denying credit in respect of tubes and flaps cleared along with tyres, tubes manufactured by the applicant. The contention is that applicants are clearing tyres, tubes and flaps in form of sets and taking credit in respect of duty paid on tyres and flaps. The value of the bought -out items is included in the assessable value of tyres. The contention is that as per the provisions of Rule 2 of Cenvat Credit Rules, the accessories also included in the definition of inputs.

(2.) WE find as per the definition of inputs, which includes accessories also prima facie, appellants have a strong case in their favour. Therefore, the pre -deposit of duty and penalty is waived for hearing of the appeal. The stay petition is allowed.