9911796707
TMI Blog1994 (7) TMI 183X X X X Extracts X X X X X X X X Extracts X X X X ..... ODVAT credit taken in respect of metal containers for clearance of Mango pulp packed in Asceptic Pouches. 2. Taking into consideration the amount involved and also that the issue fell in a short compass, with the consent of parties, the appeal itself was taken up for disposal dispensing with the pre-deposit of the duty demanded in terms of the impugned order. 3. Brief facts of the case are that the appellants manufacture Mango pulp and sell the same either packed in tin containers or Asceptic pouches. The appellants utilised the MODVAT credit taken in respect of tin containers for payment of duty towards Mango pulp packed and cleared in Asceptic pouches. Proceedings were drawn against the appellants for reversal of this MODVAT credit un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e facts of the case, the metal containers were not used in the manufacture of Mango pulp, in as much as the Respondents have cleared the final product in pouches. It is evident that the credit of duty on the metal containers cannot be used for the purpose of payment of duty on the final product if the metal containers themselves have not been used in the manufacture of final products. The Assistant Collector s order is directly in conflict with the provisions of Rule 57F(1). 4. The learned Consultant for the appellants pressed the instructions of the Central Board of Excise Customs contained in letter F. No. 261/72/16/ 87-CX. 8, dated 8-8-1988 in his favour. He pleaded that in a case where same input was brought in for the manufacture ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty paid inputs. 5. We observe that in the present case it is not the same input which has been received from two different streams. The subject matter for decision before us is regarding two different inputs which were received for intended use in the manufacture of specified finished product. We observe that the MODVAT credit has been allowed to reduce the cascading effect of duty paid on inputs utilised for manufacture of specified finished products and in case those finished products are not used at all in or in relation to the final product the question of allowing MODVAT credit in respect of the same would not arise. The nexus has to be first established between the input and the final product and its use in relation to the final ..... X X X X Extracts X X X X X X X X Extracts X X X X
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