1992 (4) TMI 141 - AT - Central Excise

Summary

Issues:
Appeal regarding Modvat benefit for Aloxide paper/Coated abrasives and Hoop Iron/CR Strips.

Analysis:
The judgment involves two appeals arising from the same Order-in Appeal, where the Collector of Central Excise held that M/s. Jayshree Timber Products were eligible for Modvat benefit for Aloxide paper/Coated abrasives but not for Hoop Iron/CR Strips. The Collector challenged the allowance of credit for Aloxide paper in one appeal, while Jayshree challenged the denial of Modvat credit for Hoop Iron in the other appeal. Both appeals were heard together and decided in this common order.

In the appeal concerning Aloxide paper, the Department argued that these items are tools excluded from Modvat benefit under Rule 57A. However, the respondents contended that a previous decision by the Tribunal allowed Modvat benefit for coated abrasive paper, citing the case of Andaman Timber Industries Ltd. The Tribunal held that Aloxide paper is not a tool and is eligible for Modvat benefit, considering the classification under Central Excise duty and relevant case law. The appeal by the Department was dismissed based on the Tribunal's previous rulings.

Regarding the appeal on Hoop Iron, it was established that this material is used for packaging Plywood and qualifies as packaging material under Rule 57A. The Tribunal clarified that packaging materials include materials used for packaging final products, not just complete containers. The exclusion provisions under Rule 57A did not apply to Iron Hoop used for packaging Plywood, and the appeal by Jayshree was allowed, entitling them to consequential reliefs.

In conclusion, the Tribunal dismissed the appeal related to Aloxide paper/Coated abrasives and allowed the appeal concerning Hoop Iron/CR Strips, providing detailed reasoning for each decision.