2012 (11) TMI 773 - HC - Central Excise

Admissibility of Modvat Credit - Whether Modvat Credit is admissible on glass bottles and plastic crates used for packing material for erated water when the value thereof is not included (i.e. bottles/crates as such neither declared nor could be ascertained) in assessable value of the final product, i.e., erated water - Held that - the point, referred to above, is required to be answered by this Court. - Tribunal has to make a statement of the case to Court within a period of four weeks from the date of communication of this order for further consideration .

Summary

Issues Involved:
Jurisdiction of High Court under National Tax Tribunal Act, 2005; Admissibility of Modvat Credit on packing material for aerated water.

Jurisdiction of High Court under National Tax Tribunal Act, 2005:
The judgment of the High Court discussed the applicability of the National Tax Tribunal Act, 2005 and the jurisdiction of the High Court in light of this Act. The Court noted that the provision of Section 30 of the Act, which intended to amend the relevant provision relating to the jurisdiction of the High Court, had not been given effect to by notification. As a result, the High Court retained its jurisdiction to entertain the appeal as allowable before the National Tax Tribunal Act, 2005 came into force. This decision was based on a thorough examination of the statute and the judgment of the Hon'ble Supreme Court.

Admissibility of Modvat Credit on packing material for aerated water:
The Court admitted an appeal based on the substantial question of law regarding the admissibility of Modvat Credit on glass bottles and plastic crates used for packing material for aerated water. The specific question raised was whether Modvat Credit is admissible when the value of bottles and crates is not included in the assessable value of the final product, i.e., aerated water. The Court considered this question to be crucial and required an answer. Despite the department's clarification on the issue, the Court believed that a final opinion should be expressed by them. Consequently, the Tribunal was directed to make a statement of the case raising the question for the Court's consideration within a specified timeframe. The judgment concluded by disposing of the matter and instructing all parties to act on a signed copy of the order.

This detailed analysis of the judgment highlights the key issues of jurisdiction under the National Tax Tribunal Act, 2005 and the admissibility of Modvat Credit on packing material for aerated water, providing a comprehensive understanding of the Court's decision and reasoning.