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TMI Blog2002 (3) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... ng for the appellants submitted that the short point to be considered in this case is whether appellants are entitled to take Modvat credit on packing materials since the duty was paid on the maximum retail price. He said that the issue involved herein has already been considered by the decision of the Tribunal in the case of CCE v. Guljag Chemicals Pvt. Ltd. reported in 2001 (127) E.L.T. 78. 4. On the other hand, Shri Narasimha Murthy, appearing for the Revenue submitted that the case law referred to by the other side is not applicable to the facts of this case. In the case referred to above, the party has included the cost of primary packing and accordingly, the Tribunal was of the view that the party was entitled to take credit s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all taxes local or otherwise, freight, transport charges, commission payable to dealers, and all charges towards advertisement, delivery, packing, forwarding and the like, as the case may be, and the price is the sole consideration for such sale." 6. The Notification further indicated that the quantum of abatement available from the retail price for the purpose of payment of duty. The amount of abatement indicated for the batteries was 40%. During the same period, the Modvat rules also indicated that Modvat credit of duty paid on the packing material is available if the cost of the packing material was included in the value of the final product. The Modvat rules did not, in contrast to the earlier Rules, refer to the provisions of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issioner (Appeals) and the relevant portion is as under :- ".......... There is no provision in the Modvat Rules which debars taking Modvat credit in such situation. Interpretation sought to be given in the impugned order to Rule 57B(2)(v) is ill founded and without any basis as borne out by very wordings, which are reproduced in the previous paras. It also cannot be said that Section 4 includes the cost of only retail packing. Assessment under Section 4A has to be made by allowing the statutory deductions provided in the relevant notification without going into the reasoning thereof. Accordingly, I hold that Modvat credit is admissible on inputs when duty on the finished products has been paid under Section 4A……." 6. While examin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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