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TMI Blog2016 (5) TMI 305X X X X Extracts X X X X X X X X Extracts X X X X ..... ollowing substantial questions of law : "(i) Whether under the Central Excise Rules, a manufacturer would be eligible to take credit of duty paid on packing material provided the value of such packing material is or was included in the final product or in other words inclusion of the value of the packing material in the final product is a relevant consideration to decide the validity of the claim to CENVAT/MODVAT credit on packing material ? (ii) Whether the order of the Tribunal suffers from the vice of failing to examine relevant consideration in as much as after recording the petitioner's submission that the value of the packing material is/was included in the value of the furniture (final product) and thus eligible to take credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and thus bad for want of jurisdiction?" 2. Heard Ms.Cynduja Crishnan, learned counsel for the appellant and Mr.N. Mohanamurali, learned Standing Counsel for the second respondent. 3. The appellant/assessee is a manufacturer of moulded plastic furniture and material handling crates falling under Chapter Sub-Heading 9401.00/9403.00 and 3923.90 of the Central Excise Tariff Act, 1985. The officers of the Head Quarters Anti Evasion Unit, Tiruchirapalli, carried out a surprise inspection of the Pondicherry Unit of the appellant on 18.4.2001 and found out that in the invoice cum delivery challans, the words 'Woven Sacks - Nos.' were typed against the column 'Special Note'. After enquiry, the officers found out that at request of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled by the appellant was allowed by the Commissioner (Appeals) by an order dated 28.10.2002. Therefore, the Revenue filed a second appeal before the first respondent - Tribunal in E/143/2003. The Tribunal allowed the appeal of the Revenue on the ground that if the packing material had not been used for the purpose of packing the finished products, the credit taken by the assessee for the duty paid on packing materials had to be reversed. In the said view of the matter, the Tribunal allowed the appeal of the Revenue by a final order dated 3.8.2009. It is against the said order that the assessee is on appeal. 8. Unfortunately, the Tribunal has not taken into account the definition of the word 'input' appearing in Rule 2(g) of the CE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... object of granting CENVAT credit is to ensure a single incidence of tax of the final product. The very purpose of the value added tax system is only to ensure this and to avoid incidence of tax more than once. The Tribunal has found that there is a mention about the packing material in fine print in the invoices. But, merely because it was found in a small print, the Tribunal interfered with a finding of fact recorded by the Commissioner of Appeals. 11. There is no dispute about the fact that the final products were cleared along with the packing material in this case. The surprise inspection did not reveal that the packing materials were recalled and again made use of as sought to be contended by Mr.N.Mohanamurali, learned Standing Counse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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