GKN SINTER METALS LTD. Vs. CCEX

JUDGEMENT

(1.) THIS appeal is directed against the Order -in -Appeal No. PI/313/2006 dated 20.9.2006.

(2.) THE relevant facts that arise for consideration are that the appellants had purchased plastic crates, which were used in their factory premises for transportation, storing of raw materials and finished goods within the factory premises. Show cause notice was issued to the appellants based upon the audit query that appellants have availed cenvat credit on plastic crates, which is inadmissible since the crates are not used in or in relation to manufacture of their final products.

(3.) THE adjudicating authority confirmed the demand on the ground that the plastic crates were used by the assessee for storing raw materials, which has no relation to the manufacture of the final products. On an appeal, the Commissioner (Appeals) dismissed the appeal of the appellants on the ground that the plastic crates were neither integrally connected with the manufacturing process, nor the value appears to have been included in the value of final products but they are used for convenient transportation of the finished goods.