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2016 (5) TMI 305 - HC - Central ExciseCenvat Credit - Eligible input - Final products cleared along with the packing material - Held that:- Tribunal allowed the appeal of the Revenue on the ground that if the packing material had not been used for the purpose of packing the finished products, the credit taken by the assessee for the duty paid on packing materials had to be reversed. But unfortunately it has not taken into account the definition of the word 'input' appearing in Rule 2(g) of the CENVAT Credit Rules 2002. The object of granting CENVAT credit is to ensure a single incidence of tax of the final product. The very purpose of the value added tax system is only to ensure this and to avoid incidence of tax more than once. The Tribunal has found that there is a mention about the packing material in fine print in the invoices. But, merely because it was found in a small print, the Tribunal interfered with a finding of fact recorded by the Commissioner of Appeals. There is no dispute about the fact that the final products were cleared along with the packing material in this case. - The surprise inspection did not reveal that the packing materials were recalled and again made use of as sought to be contended by the respondent. An invention of this nature across the bar cannot improve the case of the Revenue. Therefore, the order of the Tribunal is set aside. - decided in favour of appellant
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