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TMI Blog2012 (6) TMI 310X X X X Extracts X X X X X X X X Extracts X X X X ..... ates during the process of manufacture and disastrous consequence of non-use of such crates. In these circumstances the PVC crates being used as inputs/capital goods in the manufacture of aerated waters accordingly CENVAT Credit is admissible on the same - Decided in favor of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... he washing cycle, filling process and final inspection, the filled glass bottles are automatically put back in the crates. Plastic crates move on conveyor after bottles are removed by uncaser, washed and then comes to the caser where the bottles are crated in plastic crates. It is his submission that the aforesaid process of manufacturing shows that High speed Automatic machine cannot function without the use of plastic crates. The process will not be complete if the case packer machine does not work as the conveyor will become jam and bottles even if removed from conveyor manually will become heaps/like a hill and manufacturing will stop. Bottles are cleared with the crates and empty bottles are received with crates. 3.1 He has further s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uct is assessed under MRP based assessment under the provisions of section 4A of Central Excise Act, 1944, hence all expenses are included in the value of the goods. Accordingly, collection of deposits from customers on PVC crates is irrelevant to the facts in issue. In this connection he has referred to the judgement of the Tribunal in the case of Commissioner of Central Excise, Mumbai-IV vs. Aqua Bislery (India) Ltd. 2011 (267) ELT 283 (Tribunal-Mumbai). 3.4 Further,he has also submitted that the Show Cause Notice was issued to the Appellant on 31.03.2005 to recover CENVAT Credit for the period 2000-2001 to 2003-2004. It is submitted that all the facts including the process of manufacture wherein PVC crates are used had been submitted t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s also not in dispute that the amortized cost of the PVC crates are included in its value. We agree with the ld.Representative that since the goods are assessed to duty under Section 4A of Central Excise Act attracting MRP based assessment inclusion of cost of packing or otherwise in the value of finished goods is irrelevant in determining the issue of admissibility of CENVAT Credit of the duty paid on such PVC crates. We find that this Tribunal in the case of CCE, Calcutta-I Vs. Black Diamond Beverages 1997 (91) ELT 422 (Tri.) has held that Modvat Credit under erstwhile Rule 57A of Central Excise Rules is admissible on plastic crates and it is later followed in Black Diamond Beverages Ltd. v. CCE, Cal-I 1998 (103) ELT 340 (Tri.). Similar v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ile filling the bottles in the respective crates which ultimately facilitates the transportation of the bottles within the factory and from factory to the customers premises. In these circumstances the PVC crates being used as inputs/capital goods in the manufacture of aerated waters accordingly CENVAT Credit is admissible on the same. Ld.Representative has also invited our attention to a recent Order of Commissioner of Central Excise, Patna No.46/51/MP/Denovo/Commissioner/2011 dated 24.10.2011 wherein CENVAT Credit on PVC crates has been allowed. In view of above findings we do not find any substance in the impugned order passed by the ld.Commissioner and accordingly the same is set aside and the appeal is hereby allowed. (Operative part ..... X X X X Extracts X X X X X X X X Extracts X X X X
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