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TMI Blog1992 (4) TMI 141X X X X Extracts X X X X X X X X Extracts X X X X ..... for Hoop Iron/CR Strips. The portion of the order allowing credit in respect of the former items (Aloxide paper/abrasives) has been assailed by the Collector of Central Excise in the form of the present appeal E-142/91, while the other part of the order denying Modvat credit for Hoop Iron/Strips has been challenged by Jayshree Both the appeals were heard together and are disposed of by this common order. 2. Shri A. Choudhury, appeared for the appellant Collector in Appeal No. E-142/91. He reiterated the contentions raised in the appeal petition. He laid stress on the point that the Aloxide paper and Coated abrasive (paper) are tools which are used by the respondents for polishing the Plywood. Tools being an excluded product in the Explan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd from Andamans. The Assistant Collector had made an erroneous observation that in an earlier, appeal before the Collector (Appeals) filed by them, he had upheld the order of the Assistant Collector and that they had accepted the order of the Collector as there was no agitation by them. This, the learned Counsel contended, is not correct as they had filed an appeal to the Tribunal. This factual error apart, the order of the Assistant Collector is erroneous in terms of Rule 57A read with the Explanation Clause therein. He, therefore, pleaded that their appeal be allowed and consequential benefits extended to them. 4. Shri Choudhury, learned Departmental Representative opposed the above arguments. He adopted the reasoning contained in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e bench in the case of Collector of Central Excise, Bhubneswar v. Shaw Products and Shaw Products v. Collector of Central Excise (Order No. 722,723/Cal/1991 dated 31-10-1991) holding that Modvat credit is admissible for felt and wire mesh used in the manufacture of paper was also applied. No doubt, as pointed out in the Assistant Collector s order and in the Department s appeal, the function of the Aloxide paper is for processing of goods and bringing about a change in a substance in or in relation to the manufacture of this final products. No doubt these words appear in the Explanation Clause of Rule 57A defining what are the excluded categories of goods. But it is only machines, machinery, plant, equipments, apparatus, tools or appliances ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said term. The specific mention of packaging materials in respect of which any exemption to the extent of the duty of excise payable on the value thereof is availed or the cost of which is not included or had not been included in the previous financial year in the assessable value of the final product would, no doubt, point to the fact that such packaging materials are actually complete or ready-to-use packages or containers but the expression packaging materials, simpliciter, would cover materials used for packaging a final product. In other words, while ready-to-use, complete containers like boxes, pouches, bags etc. are packaging materials, the converse position that packaging materials are such containers, the whole containers and n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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