9911796707
TMI Blog1996 (2) TMI 244X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacturer is entitled for the benefit of MODVAT Credit. The appellants had utilised MODVAT Credit in respect of input printing ink falling under Chapter Heading 3215.00 of the Central Excise Tariff Act, 1985. The department issued a show cause notice in respect of such alleged wrong utilisation for MODVAT purpose and has demanded as to why the duty should not be recovered from them under the provision of Rule 57-I of Central Excise Rules, 1944. 3. Arguing for the appellants the Learned Advocate submitted that the lower authorities have followed the judgment of the Tribunal rendered in the case of Parle Products (P) Ltd. v. Collector of Central Excise as reported in 1992 (57) E.L.T. 152 wherein west Regional Bench of the Tribunal had t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come into existence, has to be taken as intermediary product and even if that excisable product is exempt from payment of duty, vide Rule 57D the input therefore, remains eligible to get MODVAT Credit. In that view of the matter, the Larger Bench held that the input used eligible to get the MODVAT Credit. The Learned Advocate pointed out that in the present case the final goods namely, tea was being packed in unit containers and the classification under various sub-heading was on the basis of grammage packed in tea container and the manner in which it is sold to consumer in packed condition. It is his contention that the process of repacking itself has been considered as `manufacture , and further the labels on the containers disclose not o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... printing the necessary details on the aluminium foil which is used as a packing material. He also referred to the judgment of the Tribunal rendered in the case of Geep Industries Syndicate Ltd. v. Collector of Central Excise, as reported in 1995 (76) E.L.T. 399, wherein a broad view has been taken by the Bench in respect of packing material duplex boards used for producing cartons for packing material and it has been held to be eligible for Modvat credit under Rule 57A of the Central Excise Rules, 1944. In view of these submissions, the Learned Advocate submits that view from any angle, the benefit of the MODVAT credit in respect of printing ink utilised for printing the necessary details on the packet, is required to be extended. 4. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied on the basis of quality, brand name and type of tea sold is not disputed by the department. The goods are sold on the basis of details printed on the packet and it is also a statutory requirement. In that view of the matter, the printing ink used for printing various details on the packet becomes a necessary ingredient in the process of marketing of the goods, inasmuch as that the goods are identified in the market by its label and the details given on the label. The goods are not sold in the market on the basis of its packing and further packing is not used merely for protection of the goods, but the goods are identified in the market on the basis of the details which are printed on the packet. In that view of the matter the judgment r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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