2002 (5) TMI 556

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..... Order]. The appellants manufacture articles of glass falling under Chapter 70. For this purpose, they procured duly packed sheet glass and the float glass from the market and availed the Modvat credit of the duty paid on these inputs under Rule 57A of the Central Excise Rules, 1944. The Asstt. Commissioner of Central Excise Division-II, Noida initiated proceedings against them and vide two o .....

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..... ecting them to penalty one that the packing charges are reflected separately in the invoices of the input materials supplied to the appellants and that such charges are not defined as inputs under Rule 57A. It is further observed that the packing charges are nothing but expenditure incurred on packing of the goods; that the Modvat credit under Rule 57A is admissible only on inputs used in or in re .....

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..... id on the value of such packing in respect of which they have taken the Modvat credit. More over the appellants have paid the duty on the value of the packing charges at the same rate to which the sheet glass/float glass itself is subject to duty. The mere mention of the value of the packing charges and duty paid on it separately in the invoices by itself would not take such packing charges out of .....

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