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Customs, Excise and Gold Tribunal - Mumbai

Commissioner Of Customs & Central ... vs Mars Print-N-Pack Industries on 11 April, 2003

ORDER
 

 Jyoti Balasundaram, Member (J)  
 

1. The Revenue is aggrieved by the order of the Commissioner (Appeals) holding that the respondents herein, who are manufacturers of excisable goods falling under Chapter 39 of the schedule to the CETA 1985, are eligible to modvat credit on inputs used in the manufacture of their final products i.e., polyethylene bags falling under CETA sub-heading 3923.90 although they did not file a declaration showing polyethylene bags as their final products.

2. I have heard the learned DR and perused the records. The lower appellate authority has extended the benefit of modvat credit after noting that initially polyethylene bags were being used as inputs for which a declaration had been filed and later on they started clearing polyethylene bags on payment of duty after taking modvat credit on the inputs going into the manufacture of such bags. In other words he has noted that the polyethylene bags have been declared, although there was no separate declaration that polyethylene bags became final products for the respondents.

3. In this view of the matter I hold that the credit has been rightly held to be admissible to the respondents, uphold the impugned order and reject the appeal.