2010 (8) TMI 525

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..... glass bottles, crates etc. is amortized and included in the cost of product itself. The cost of secondary packing cannot be excluded and further clarification has been given that the cost of crates is to be amortized and included in the cost of product while determining the transaction value when the cost of plastic crates forms the part of transaction value the Cenvat credit on these plastic c .....

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..... . In the show cause notice it was alleged that the plastic crates procured by the appellants were used for handling the material, the terms input has a conventional meaning. It should get wholly or substantially used up by the time the out put emerges. The plastic crates used by the appellants as material handling equipments can hardly be treated as inputs as the definition of input under Rule 2(k .....

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..... He also submitted that in the case of GKN Sinter Metals Ltd. v. Commissioner of Central Excise, Pune-I reported in 2008 (224) E.L.T. 560 (Tri.-Mumbai), same view was taken by this Tribunal. He further submitted that for the subsequent period also, the same Commissioner (Appeals) following the decision of the above cited cases has allowed the Cenvat credit on plastic crates to the appellants. He al .....

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..... h the sides, I find that Circular No. 643/34/02 dated 1-7-2002 clarified the issues. 4. Packing: - (a) Whether cost of secondary packing is to be excluded from the transaction value? (b) How is the cost of reusable containers to be determined for inclusion in the transaction value? (a) No. There is no provision for such a deduction in the conce .....

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..... e the Cenvat credit on these plastic crates cannot be denied. Moreover these plastic crates are being used by the appellants as material handling equipment and transportation of their finished goods for safely transportation by their finished goods to their customers which forms the part of secondary packing. Hence the view has been taken by the Larger Bench in the case of Banco Products (India) L .....

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