Customs, Excise and Gold Tribunal - Tamil Nadu
Cce vs Karnataka Soaps And Detergent Ltd. on 29 May, 1998
Equivalent citations: 1998(79)ECR391(TRI.-CHENNAI)
ORDER
U.L. Bhat, J. (President)
1. Respondent, engaged in the manufacture of soaps, was bringing into the factory duty paid paper rolls and through job worker getting the same cut and printed and used the same for packing soap. Respondent was availing Modvat Credit of duty paid on the packing rolls originally brought into the factory. Show Cause Notice was issued stating that paper rolls themselves were not used as packing material and therefore, modvat credit of the duty paid on the packing rolls would not be available. However, after hearing the respondent, Assistant Collector dropped the proceedings and his order has been confirmed by Commissioner (Appeals). The Commissioner of Central Excise being aggrieved has filed the present appeal.
2. The matter is covered in favour of the assessee by the decision of Larger Bench of the Tribunal in Ashwin Vanaspathi Industries Ltd. and the judgment of High Court of Madras in Ponds India Ltd. . The Board has accepted the decisions and issued Circular No. 321/37/97-CX dt. 30.6.1997 stating that question of eligibility of credit on raw materials for packing materials may be decided in the light of the above decisions.
3. In that view, the appeal has no merit and is dismissed.
Pronounced and dictated in the open court.