9911796707
TMI Blog1996 (1) TMI 200X X X X Extracts X X X X X X X X Extracts X X X X ..... ti, Member (T)]. This appeal is against the order of the Collector of C. Excise (Appeals), Hyderabad. Under the impugned order the learned appellate authority has allowed the appellant s plea that the Polyliners used in the cartons for packing batteries are eligible for the benefit of MODVAT Credit. The learned lower authority has held as under : In the instant case, the essential nature ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for packing purposes. There is nothing on record to indicate to the contrary and in view of the law as laid down by the Tribunal, I am of the view that the order of the Assistant Collector is not based on a correct and proper interpretation of law and is, therefore not sustainable . 2. The learned Collector has urged as under : (i) In Rule 57A, the term Packaging materials has been used wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aw material for packing material. (ii) Also the end use of polyliners clearly amplifies the fact that they are not packaging materials. As has been admitted by the assessees, the end use of polyliners inside the carton is to prevent deoxidation of batteries and also to impart moisture resistance properties to the carton. Thus the polyliners by imparting certain required qualities to the cartons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent de-oxidation of the batteries. Inasmuch as the de-oxidation of the batteries is required to be done during the course of transport of the batteries and storage it is to be held that the use is a technical necessity for the purposes of putting the goods in the market stream. The Hon ble Supreme Court instead the Tribunal have in a number of cases held that so long as the use of an article is a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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