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TMI Blog2016 (9) TMI 623X X X X Extracts X X X X X X X X Extracts X X X X ..... erefore, the playing cards which is supplied along with final product should be eligible for input credit. The definition of input also clearly suggest that the input need not to be used directly in the manufacture and also not required to be contained in the final product but if it is used even in relation to the final product credit should be allowed. In the present case the playing cards indeed supplied along with final product it fulfilled the criteria of inputs, therefore credit cannot be denied of the duty paid on playing cards followed by the judgment of Hon’ble Gujarat High Court in the case of Commr. of C. Ex. Cus. & S.T. Daman Vs. Prime Health Care Products [2010 (10) TMI 881 - GUJARAT HIGH COURT]. - Decided in favour of appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ultant appearing on behalf of the appellant submits that there is no dispute that playing cards are purchased on payment of duty and supplied along with final product as a free gift. The expenses towards purchase of playing cards is borne by the appellant therefore cost of playing cards stand included in the final product which suffered the excise duty therefore playing cards even though not directly used in the manufacture but supplied along with final product therefore Cenvat credit should be allowed. He submits that as per the definition of input, input need not to be directly used in the manufacture or it is not required to be contained in the final product. In the present case playing cards are dispatched along with final product there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by Hon'ble High Court as reported in [2003(151) ELT A297]. 5. I have carefully considered the submissions made by both sides and perused the record. 6. I find that the whole concept of Modvat/Cenvat scheme to avoid cascading effect of tax sufferred on input. In that stream whatever input is going into final product either directly or indirectly, duty suffered on that input should be set off and only on value addition duty is levied. In the present case the playing cards even though it does not participate directly in the manufacture of final product i.e. spray guns but undisputedly the same is purchased by the appellant and expenditure of the same stands absorbed in the cost of the final product which ultimately suffered the duty as a wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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