TMI Blog1998 (5) TMI 221X X X X Extracts X X X X X X X X Extracts X X X X ..... rder per : P.C. Jain, Member (T)]. Heard both sides. 2. By the impugned order the lower appellate authority considered the admissibility of Modvat credit on the following items :- (i) Oxygen Gas, (ii) D.A. Gas, (iii) Hessian bags, (iv) Gunny Cuttings Synthetic Cloth, (v) Raam labels, (vi) Gum Tape, (vii) Refractory bricks, (viii) Cement, (ix) Filter Regulator, (x) Coal, (xi) Steam, (xii ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct that is paper either for the purpose of packing or for the purpose of manufacturing the final product. He submits that all these inputs are now covered by various judgments of the Tribunal. There is a similarity in the case of Union Carbide India Ltd. v. C.C.E., Calcutta-I reported in 1996 (86) E.L.T. 613. Oxygen gas is used for cutting and welding purposes in relation to the manufacture of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1994 when Modvat credit on capital goods were introduced. Therefore all these items being in the nature of capital goods, submits the ld. JDR, are not entitled to Modvat credit. 6. We have carefully considered the pleas advanced from both the sides. Oxygen Gas, D.A. gas, refractory bricks, Cement and synthetic cloth are entitled to the benefit of Modvat credit because these cannot be considered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credit cannot be denied to the assessees by treating cess as equal to Central Excise duty. The Two duties, cess duty and the other Central Excise duty are different in character and what is covered by explanation to Rule 57A is that cost of the packaging materials is to be included in the assessable value of the final product for levy of Central Excise duty. There is no finding by the adjudicating ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts were entitled to pay duty at specific rate on their production of paper and paper board during the aforesaid period. Otherwise they will have to prove that the cost of packaging materials was being included in the assessable value of the final product. In other words in short we have allowed the appeal in respect of all items regarding admissibiity of Modvat credit, and subject to verification ..... X X X X Extracts X X X X X X X X Extracts X X X X
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