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TMI Blog2016 (9) TMI 625X X X X Extracts X X X X X X X X Extracts X X X X ..... and forms component of the raw material and that is raw sugar - Held that:- it is found that packing cost of raw sugar for transportation from the Port of import, to the factory of production, is an element of cost of the raw material and as such forms part of the input cost. Such input or raw sugar have been utilized in the manufacture of taxable outputs. Both the rulings of the coordinate of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f V.P. Sugar and Molasses, manufactures Sugar both from Sugar Cane as well as Raw Sugar which is imported. The raw sugar when arrived at the Port in loose form, in containers, was accordingly packed in the P.P. Bags to facilitate transportation to the factory. The appellant took Cenvat credit on the P.P. Bags. In the course of audit, revenue objected that the talking of credit and the appellant re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utside the premises or factory and as packed or bags used outside the factory, the credit is not allowable. The appellant preferred an appeal before the learned Commissioner, (appeal), who vide the impugned order have rejected and upholding the findings of the Assistant Commissioner, relying on the ruling of this tribunal in the case of Ponni Sugars Ltd. Versus Commissioner of C. Ex. 2008 (227) E. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the appeal with consequential benefits. 3. The learned AR for revenue relies on the impugned order. He further relies on the ruling in the case of Ponni Sugar Ltd. (supra) and Universal Cables Ltd. v. CCE 2003 (159) ELT 661 (tri. SMB). 4. Having considered the rival contentions, I find that packing cost of raw sugar for transportation from the Port of import, to the factory of production, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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