2007 (4) TMI 65 - AT - Central Excise

Cenvat/Modvat credit - Department contended that no modvat credit allowed on the packing materials and as antistatic oil was admissible under Rule 57A - Held that department contention was not correct and allow the credit on packing material

Summary

The Appellate Tribunal CESTAT, Ahmedabad rejected the Department's appeal against the Commissioner (Appeals) order related to clearances of texturised yarn under Chapter No. 5403.00 during a specific period. The Tribunal held that Modvat credit on packing materials should not be disallowed when tariff value is fixed for the final product. The appeal by the Department was rejected.