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TMI Blog2001 (11) TMI 203X X X X Extracts X X X X X X X X Extracts X X X X ..... rds are not packaging materials but the same are advertising materials and as such are ineligible for taking Modvat credit. Accordingly, they were issued show cause notices proposing to deny the Modvat credit of Rs. 1,77,352/- (Rupees one lac seventy-seven thousand three hundred fifty-two) and Rs. 54,330/- (Rupees fifty-four thousand three hundred thirty) availed by them during the period February, 1999 to July, 1999 and from August, 1999 to January, 2000 respectively. The appellants in their adjudication proceedings before the lower authorities contended that the hanging cards are nothing but packing materials, 100 blades are packed in a hanging cards, which are folded and cleared together by further packing. They cannot be called as adver ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... products under sub-heading 8212.00. It is, however, found that 'Hanging Card' is a card displaying printed reproduction of the coloured design for their finished product in the form of cut outs with flaps incorporating designs apparently intended for advertisement of material. It could be hanged like a calender. It is also seen that in the space covered by flaps the containers of the blade packet is also inserted. In a single such card 20 pkts. of blades are inserted either manually or automatically and after that the cards with the blade pkts. are loaded in the cartons for despatch. It is thus seen that the main purpose of the 'Hanging Card' is for dispaly in the shop for advertisement of the product attached to it. It is similar to a cale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nging cards' have paid duty under Chapter 48. I find force in the above submission of the learned Consultant. The earlier decision, in the case of Ajanta Print Arts was not in the context of the Modvat provisions. The provisions of Rule 57B(v) allows availing Modvat credit of duty on packing material provided the cost of such material is included in the value of the final product. There is no dispute about the fact that the value of this hanging cards is included in the value of the final product. If the Revenue was of the view that these hanging cards are not packing materials there was no justification for inclusion of the value of the same in the value of the blades. 5. Such hanging cards duly carrying the blades fitted on them have bee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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