Customs, Excise and Gold Tribunal - Tamil Nadu
Cce, Madras vs M/S. Chennai Bottling Co. Pvt. Ltd. on 28 June, 2001
Equivalent citations: 2001(133)ELT657(TRI-CHENNAI)
ORDER
Shri Jeet Ram Kait
1. The Revenue is aggrieved with the Order of Commissioner (Appeals) in his Order-in-Appeal No. 39/96(M) dated 16.2.96. In para 2 of his order he has held as follows:-
"In my earlier order-in-appeal No. 230/95(M) dated 10.11.95, among other things, I have held as follows:
It is clear that unlike cosmetic toilet powder, medicines which are packed in containers where contents alongwith the containers are also sold, in the case of aerated waters, only the aerated water contained in the glass bottles is sold to the consumer. It is therefore not contemplated according to principles of costing that the entire cost of the glass bottles and the crates should be added as a one time measure in the assessable value of the aerated water. Since the admitted position is that the proportionate cost of the above two ingredients has been added in the assessable value, I see no reason to disallow Modvat credit on the ground that the total cost has not been added. Further, as rightly claimed by the appellants credit has been taken only with the knowledge of the department and therefore there is no warrant for imposition of any penalty.
Following the above ratio, I set aside the impugned order and allow the appeal with consequential benefit".
2. Heard Ld. SDR Shri Sreekumar Menon, who reiterates the grounds of appeal.
3. Ld. Counsel has invited our attention to the following judgments:-
i) CCE Hyderabad Vs. Charminar Bottling Co. Ltd. reported in 2000 (117) ELT 205 (Trib.);
ii) Black Diamond Beverages Ltd. reported in 1998 (103) ELT 340 (Trib.) &
iii) CCE Calcutta I & II vs. Black Diamond Beverages Ltd. reported in 1998 (103) ELT 655 (Trib.).
In all the three judgments rendered by the Tribunal, the Tribunal has held that glass bottles used for packaging/containing aerated water are eligible for Modvat credit if value of packaging is included in value of aerated water, even though on pro rata basis, depending upon the average life of the bottles/crates. It has also been held that glass bottles although durable and returnable, Modvat credit is admissible if cost thereof is included by the assessee in the assessable value of aerated waters and the cost has to be arrived at on pro rata basis for a single use depending on number of possible uses.
4. Considered the arguments from both the sides and respectfully following the judgments rendered by the Co-ordinate benches of the Tribunal mentioned supra, we do not find any merit in the appeal filed by CCE Chennai and the appeal is therefore rejected. Ordered accordingly.
(Dictated and Pronounced in open Court)