Customs, Excise and Gold Tribunal - Mumbai
Collector Of Central Excise And Customs vs Asian Paints (I) Ltd. on 11 August, 1998
Equivalent citations: 1999(107)ELT412(TRI-MUMBAI)
ORDER Gowri Shankar, Member (T)
1. In the order impugned in the appeal, the Collector (Appeals) has held that the paint which was used by the assessee to paint drums in which it packed the paint manufactured by it would be an input. He said that it was necessary for the assessee to paint the drums used for packing the paint, for it to be marketable, and therefore an input. This is challenged in this appeal by the department on the ground that paint used for painting the drums is not used in the manufacture of final products of the assessee.
2. The appeal does not, touch upon the reasoning in the order of Collector (Appeals) that the goods in dispute were used to render the final product marketable which is an essential feature of manufacture. It is also to be noted that credit is available on inputs which is used in, in relation to the manufacture of the final product. There is no claim that the paint could be sold, or sold in unpainted drums. The paint therefore has rightly been held to be an input.
3. The appeal is dismissed.