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2013 (10) TMI 194 - HC - Central ExciseInput Services - Welding Electrodes, Plastic Crates & Pallets as well as credit on input services viz. taxi service, mobile phones and telephones – Held that:- Plastic Pallets are used in or in relation to manufacture of final products, as it has been specifically accepted that the Plastic Pallets are required for warehousing of bottles to avoid seepage in the bottle cartons; in other words, to ensure that the bottle remains bottle until such time it is cleared from the factory or the manufacturing premises. As would be evident from the show-cause notice, since the Plastic Crates were taken out from the factory premises in order to enable printing on the bottles those were manufactured, it was thought that the user of Plastic Crates was not in relation to manufacture of final products - It has not been doubted that the manufacture of the final product comes to an end only after the printing is done - While formulating the show-cause notice, reference was made to Rule 8 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000. Rule 8 makes it abundantly clear that, at the stage of complying with the provisions of Rule 8, excisable goods may be taken for in the production or manufacture of the other articles - The fact remains that the bottle, as was manufactured on being printed, becomes a printed bottle - The setup of the respondent is to manufacture printed bottle for the purpose of sale - there cannot be any dispute that the Plastic Crates are used in or in relation to manufacture of final product, i.e. the printed bottle. Insofar as the input services are concerned, as has been noted by the Tribunal, it was never contended that such services were not used by the respondent in relation to the manufacture of final products - In other words, while issuing the show-cause notice, the claim of the respondent that the subject input services are being used by the respondent in relation to manufacture of final products was not disputed and, accordingly, there is no scope of interference with the finding recorded by the Tribunal in relation to input services – Decided against Revenue.
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