2000 (10) TMI 262 - AT - Central Excise

Summary

Issues:
Eligibility of additional duty of Customs on inputs for utilization towards payment of duty on aseptic packaging rolls.

Detailed Analysis:

Issue 1: Eligibility of Additional Duty of Customs on Inputs
The appellant manufactured aseptic packaging by laminating plastic with paper and aluminum, which required strips of polypropylene or polyethylene for airtight sealing. The question was whether the duty paid on these strips could be utilized for duty payment on the aseptic packaging rolls. The department objected, stating the strips were not necessary for converting the constituents into sheets. The Commissioner upheld this objection.

Analysis: The advocate for the appellant argued that aseptic packaging was not marketable without the strips, likening them to essential accessories. The department contended that the strips were unnecessary in the appellant's manufacturing process. However, the Tribunal disagreed, stating that processes needed to render a product marketable were part of manufacturing. Citing precedents, the Tribunal highlighted that items like droppers for medicines were considered inputs for manufacturing bottles. The Tribunal found the strips essential for airtight sealing, making them inputs for manufacturing the finished product.

Conclusion: The Tribunal allowed the appeal, setting aside the Commissioner's order, as the strips were deemed necessary inputs for manufacturing aseptic packaging, essential for making the final product marketable.