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TMI Blog2005 (1) TMI 277X X X X Extracts X X X X X X X X Extracts X X X X ..... ; that they send HDPE bags to the salt manufacturers for packing the salt in the bags for the purpose of transporting through railway; that the Adjudicating Authority disallowed the Modvat credit of the duty paid on HDPE bags on the ground that these are not used in or in relation to the manufacture of the final products and that these bags are used for transporting raw-material from the manufacturer's premises to the premises of the respondents; that however, the Commissioner (Appeals), under the impugned Order, has allowed the Modvat credit on the ground that the bags are used in relation to manufacture; that the Commissioner (Appeals) has also given his finding that as per the provisions of Rule 57B of the Central Excise Rules, Modvat cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be input for the final product. He also referred to Rule 57F(4) of the Central Excise Rules, which provides for removal of inputs for the manufacture of intermediate product necessary for the manufacture of final product and returning the same to the factory for further use in the manufacture of final products, that the HDPE bags are inputs for the Caustic Soda Lye. He also relied upon the decision in their own case wherein the Tribunal has allowed the Modvat credit on HDPE bags vide Final Order No. A/388/04 (SM) dated 26-2-2004. 4. We have considered the submissions of both the sides. Rule 57A of the Central Excise Rules, 1944 enables the manufacturer to avail of the Modvat credit of the duty paid on inputs which are used in or in relati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e manufacturer of final product to take credit of the duty paid on packing material provided the cost of such packing material is included in the value of the final product. In the present matters the packing material is not used for packing the final product manufactured by the respondents as the same are used for packing the raw-material which is manufactured by some other manufacturer. The decision in the case of Ashwin Vanaspati Inds. (Pvt.) Ltd. (supra) relied upon by the learned Advocate, is not applicable as the facts are entirely different. In Ashwin Vanaspati Industries (Pvt.) Ltd. case (supra) the assessee were receiving tin sheets as packing material and in their own factory converting them into containers without the aid of powe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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