2003 (11) TMI 265

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..... nd the yarn when duty on yarn is paid on tariff value fixed under Section 3(2) of the Central Excise Act, 1944, on the grounds - (i)      Cost of paper tubes not included in the value of final product. Tariff value does not include the value of inputs. Therefore, credit on 'Antistatic Oil' and 'Paper Tube' is not eligible. (ii)    Explanation (iii) to Rule .....

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..... or the purpose of this rule, "inputs" include - (a) x x x x (b) x and packaging materials. But does not include - (i)       x x x (ii)      packaging material in respect of which any exemption to the extent of duty of excise payable on the value of the packaging material is being availed of for packaging any final product; (iii) &nb .....

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..... herefore not substantiated. The Clause (iii) is not applicable on facts and is to be rejected. (c)     Once the Commissioner of Central Excise (Appeals) has found the impugned goods to be used in relation to manufacture "and the paper tube to be nothing but packing material" the inputs stand to be eligible for credit by the concept of input under Rule 57A and the inclusion cla .....

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