Eveready Industries India Ltd. vs Commissioner Of C. Ex. on 16 June, 1999
2. Shri M.P. Devnath, ld. Counsel for the appellants submitted that M/s. Eveready Industries Ltd. manufacture Torches, flashlights and avail of Modvat credit under rule 57A in respect of aluminium brass and plastics, steel sheets and other raw materials; that they also availed capital goods credit under Rule 57-Q of the Central Excise Rules; that the Assistant Commissioner under adjudication order dated 27-8-1996 disallowed the Modvat credit on packing and forwarding charges holding that the Appellants have not made it known to the Department that whether the items brought in by them are generally supplied with or without packing; that on appeal the Commissioner (Appeals) under the impugned order confirmed the adjudication order holding that since the packing charges are charged separately and on selected basis these are neither inputs nor capital goods. Ld. Counsel further submitted that under the Modvat scheme for allowance of credit on inputs no rule conferred any power on the Central Excise officers having jurisdiction over the factory of manufacturing final products to re-assess the duty on inputs received for use in or in relation to the manufacture of the final products. He relied upon the decision in the case of Kerala State Electronic Corporation vs. C.C.E., Cochin 1996 (84) E.L.T. 44 and in the case of Tata Oil Mills Co. Ltd. v. C.C.E., Cochin reported in 1997 (91) E.L.T. 144 (T).