9911796707
TMI Blog1992 (2) TMI 218X X X X Extracts X X X X X X X X Extracts X X X X ..... in holding that they were entitled to avail themselves of Modvat benefit in respect of the duty paid on Tinplates used by them in the manufacture of Tins, in turn, used for packing their final product, vegetable product, for paying the duty on the said final product. The view of the lower authorities that Tinplates were inputs only for the Tins which were final products themselves which were exempt from duty and that only the Tins being the inputs for their final product vegetable product, Modvat Credit by way of duty paid on the Tinplates was not admissible for paying the duty on the vegetable product was overruled. While the view canvassed by Rasoi during their appeal that the Tins were intermediate products in the course of manufacture o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gal and proper for the Tribunal to interpret the Rule in such a way as has been done by them in para 9 of the Order that packaging material includes raw materials required for manufacture of packaging materials specially when the manufacturer s end-product was Vanaspati and not metal container required for packaging Vanaspati? (d) Is it also legal and proper for the Tribunal to allow Modvat Credit on Tinplates required for manufacture of packaging material treating the specific exclusion of Plywood for tea chest as an individual case and holding that since Tinplate has not been specially excluded from the ambit of Rule 57A, it would be entitled to Modvat Credit, ignoring the relation between input and final product? (e) According to R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the Tribunal s final order not ultra vires? 3. The matter was argued before us by Shri M.N. Biswas, the learned Senior Departmental Representative. He adopted the reasoning contained in the Reference Application and the accompanying Statement of Facts. He stressed the fact that the benefit to Modvat Credit as packaging material is available only for ready to use containers and not for raw materials for such containers. Here, the Tinplates are only raw materials for packaging materials namely Tins and [hey do not constitute packaging materials themselves. Tinplates are inputs only for the Tins which are exempt from duty. The duty paid on the Tinplates can qualify for Modvat Credit only in relation to the duty, if any, payable on such Tin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y. Such packing are different from packaging materials. The latter are the materials from which packages are produced. 5. Shri Sinha contended that the Tribunal s impugned decision has proceeded on a correct appreciation of the scope of the expression, packaging materials, is correct in law and the department s Reference Application does not disclose any scope for reference to the High Court. He, therefore, pleaded that the application be dismissed. 6. We have considered the submissions. On a perusal of the questions of law specified in the application, we find a proposition has been advanced in para (b) that the Rule does not include credit of duty paid on raw materials for packaging materials, if the final product is not container f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions of the Import Trade Control Policy as spelt out in Appendix 17. For example, the items permitted for import against export of items like Butter and Ghee (Entry No. G 20) and Peanut Products (Entry No. G 26) include packing materials viz. Tinplate Primes OTS quality/MR type . Thus Tinplate is itself treated as packing material by the Government. Though the provisions are not in pari materia with each other, the treatment of Tinplate as packing material is consistent with the normal meaning attibutable to the said expression which is not confined to ready to use packages themselves. 8. Our impugned decision had been the subject matter of discussion before the West Regional Bench of the Tribunal in Parle Products Pvt. Ltd. v. Col ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. They observed that anything that enters into and forms part of that process must be deemed to be raw material or component part of the end-product and must be deemed to have been used in completion of manufacture of the end-product. Anything required to make the goods marketable must form part of the manufacture and any raw material or any materials used for the same would be component part for the end-product. Applying the above principles laid down by the Supreme Court to the present matter, the metal container or Tins would be component parts of the vegetable product marketed. The Tinplate is thus used for the manufacture of a component part of the final product and thus it is a material used for the manufacture of vegetable product. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
