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TMI Blog2002 (9) TMI 440X X X X Extracts X X X X X X X X Extracts X X X X ..... n this package, the appellants were supplying cameras with one free "Kodak Film" roll and the cost of the same built in the said price of Rs. 995/-. There was no problem in regard to the availment of the Modvat credit, in respect of the free film roll supplied along with the camera until in or about September, 1999. The appellants in or about October, 1999 commenced giving two additional rolls. The declared MRP of Rs 995/- remained unchanged. They received a Show Cause-Cum- Demand Notice dated 30-12-1999 in terms of which they were called upon to Show cause as to why a sum of Rs. 17,40,780/- should not be called upon to be paid and/or reversed on the ground that it represented that Modvat credit availed in respect of the additional "2 Kodak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing them as accessories/gifts which was given free along with their final products viz., Camera. They are not reversing the proportionate credit on the additional film rolls. Their contention in the cross objection that the cost of two film rolls are included in the assessable value and the Chartered Accountants certificate shows the cost of film rolls has been included in the assessable value by absorbing the profit margin. However the valuation aspect does not come into play in this case here because the matter is related to availment of Modvat. The Respondent has therefore, wrongly taken the credit on 2 additional rolls of films. In view of the above, I, therefore set aside the lower authority's order and the appeal filed by the Depar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; ...... (vi) accessories of the final product cleared along with such final product, the value of which is included in the assessable value of the final product." A perusal of this rule indicates, the most important change brought about by this rule is to allow credit on specified items by bringing them in the ambit of inputs, such as goods manufactured for captive consumption, paints, goods used for generation of electricity, accessories, packing materials, by listing them in an unambiguous manner. This rule, starts with a non-obstante clause and therefore, if any, of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... covered under Rule 57B(I)VI as a permissible inputs. (b) It is pertinent to mention that the appellant before us has pleaded that the department had nowhere questioned the Asstt. Commissioner's order regarding the acceptance of the fact that the value of the film rolls was included in the assessable value of the cameras. The appellant has also submitted statements by experts proving that the cost of additional film rolls was indeed absorbed by the appellants. The Commissioner has opted not to give any finding as to why he is not accepting these certificates and has not given any reason in his order about the Assistant Commissioner's acceptances of the testimony; the Commissioner (Appeals) has not arrived at any find ..... X X X X Extracts X X X X X X X X Extracts X X X X
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