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TMI Blog1989 (3) TMI 280X X X X Extracts X X X X X X X X Extracts X X X X ..... se Rules, 1944. The appellants herein are manufacturers of biscuits falling under sub-beading1905.11 of the Central Excise Tariff Act, 1985. They opted for MODVAT credit scheme and declared metal containers as one of the inputs used as packing materials in relation to the manufacture of biscuits. The Department found that the appellants were enjoying the exemption under Notification No. 34/83 dated 1-3-1983 which was rescinded with effect from 1-7-1986 in the financial year 1986-87. It was seen that the appellants herein in the financial year, 1985-86 and upto 30-6-1986 had excluded the cost of metal containers from the assessable value of the finished product in terms of Notification No. 34/83. The Department also found that as per explana ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cts of their case with reference to these two aspects of the Explanation to Rule 57A (1) (b), only the provisions of sub-rule (ii) to the Explanation applies to them and not (iii) as contended by the Department. 3. Shri K.M. Vadivelu, the learned D.R. appearing for the Department, referring to the Explanation under Rule 57A (1) (b) (ii) (iii), contended that both these conditions speak of only exclusion of the cost of packing materials from the assessable value. The appellants herein, according to the Department, are clearly covered by the mischief of sub-para (iii). 4. The submissions made by the learned Counsel and the learned D.R. have been carefully considered. For examination of the issue involved it will be useful to extract the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion refer to a situation where the value of the packing materials is excluded from the assessable value of the final products, either by way of exemption Notification under Rule 8 of the Central Excise Rules, or by way of declaration of assessable value in terms of Section 4 of the Central Excises Salt Act, 1944. Therefore, the common objective of sub-paras (ii) (iii) to Explanation to Rule 57A is that where that portion of the value of the goods which relates to the value of the packing materials has not suffered any duty, then there will be no question of availing of any credit of duty thereon at all. This is because only if the inputs which are used in or in relation to the manufacture of final products have actually suffered any duty ..... X X X X Extracts X X X X X X X X Extracts X X X X
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