9911796707
TMI Blog1998 (7) TMI 344X X X X Extracts X X X X X X X X Extracts X X X X ..... heme. 2. In 1986 they filed Modvat declaration under Rule 57G wherein among other inputs, they declared inputs paper bags also called paper reinforced bags. These bags were used for packing their final products. On 20-3-1989 they further amended the Modvat declaration to read as paper reinforced bags under Chapter sub-heading 3923.90 CETA. The explanation under Rule 57A Central Excise Rules defining inputs also lists excluded items which are not falling within the scope of inputs for the purpose of the rule. This rule was amended to insert a new item by Notification dated 17-9-1990 covering bags or sacks made out of fabrics whether or not coated, covered or laminated with any other material woven from strips or tapes of plastics. The depa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned Counsel Shri D.B. Shroff. The learned Senior Counsel referred to their declaration under Rule 57B dated 20-3-1989 wherein they have described the input as paper bags also called as paper reinforced bags. Reference was also made to the invoices for the receipt of the inputs which was enclosed to their monthly RT 12 returns submitted to the department wherein the supplier had shown that the input material was described as paper reinforced bags. Its classification was sought under Chapter 39 of the Central Excise Tariff Act. The learned Senior Counsel submitted that at that time of the introduction of the amendment to Rule 57A excluding bags and sacks of woven strips or tapes of plastic, there was representation to the Central Board of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e terms and not plastic bags. It was submitted that the appellants were not aware of the manufacturing process. Their declaration was as per the description in the invoice. The learned Senior Counsel further pointed out that the Commissioner has relied upon the statement dated 10-2-1995 of Shri R.N. Vora, Managing Director of Multi wall Paper Bags who has stated that they are supplying HDPE woven fabric bags on which paper is laminated using HDPE has bonding agent. He has also further stated that he had personally spoken to the employees from the purchase department of the appellant regarding non admissibility of Modvat credit on the aforesaid bags. The learned Senior Counsel pointed out that the Commissioner has relied upon the statement a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the ld. DR referred to the reasoning in the impugned order to urge that the appellants have mislead the department by not declaring the bags as HDPE bags and the appellant were aware of the fact that the bags were not mere paper bags and also made of plastic strips but had suppressed these facts and they have not given the full disclosure regarding the bags. The suppliers of the bags to the appellants in their statements have also confirmed that these bags are made out of plastic and had informed the appellants officers about non admissibility of Modvat credit on the bags. 5. The submissions made by both the sides have been considered and it is seen that the appellants are only the user of the bags in question which they had declared ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontinuing to avail Modvat on HDPE sacks even after amendment dated 17-9-1990 to Rule 57A also at the same time disclosed it in their monthly returns. The Tribunal observed that this shows that they had continued to indicate factual position to the department every month. Therefore the Tribunal held no suppression of facts or mis-statement could be alleged as it was for the officers concerned to have noticed the important fact. In this case the declaration of the appellant was as paper bags or paper reinforced bags and there is a statement of the supplier also during the cross-examination before the Deputy Commissioner that the bags are known in the market as such and like in the Tribunal decision supra, the appellants herein had also regula ..... X X X X Extracts X X X X X X X X Extracts X X X X
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