9911796707
TMI Blog1991 (2) TMI 235X X X X Extracts X X X X X X X X Extracts X X X X ..... Order per. V.P. Gulati, Member (T)]. - This appeal is against the order of the Collector of Central Excise (Appeals), Madras. The short point that falls for consideration is whether the appellants who are manufacturers of package tea are eligible for the benefit of MODVAT Credit in respect of the inputs viz. paper bags used for the manufacture of printed paper bags used for packing tea. 2. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cisable product is package tea and package tea being a separate excisable item in the excise tariff, it is the putting of the tea in the paper bag which brings into existence an excisable item. He has pleaded that the tea bags in this context, therefore, have to be treated as an intermediate product. 3. Shri P. Sundararaju, the learned SDR has pleaded that the paper bags manufactured for packing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t and that such intermediate products are for the time being exempt from the whole of the duty of excise leviable thereon or chargeable to nil rate of duty. It is pertinent to note that the products in relation to which inputs have been used have been described both under Rule 57C and 57D(2) as final products and the final product in the case of the appellants is package tea which is an excisable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tant by the Bench as to what would have been the position if the appellants were to purchase the paper bags from outside since the paper bags are exempted from payment of duty; the learned Consultant could not reply to this poser. We observe that apparently to the manufacturer who manufactures the paper bags for sale outside no MODVAT Credit would be admissible for inputs going into the paper bags ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
