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2016 (9) TMI 625 - AT - Central ExciseRefund claim - Cenvat credit reversed on P.P. Bags under protest - imported sugar packed in P.P. Bags in the godown situated outside the premises or factory and as packed or bags used outside the factory - packing cost includes the cost of P.P. Bags, and forms component of the raw material and that is raw sugar - Held that:- it is found that packing cost of raw sugar for transportation from the Port of import, to the factory of production, is an element of cost of the raw material and as such forms part of the input cost. Such input or raw sugar have been utilized in the manufacture of taxable outputs. Both the rulings of the coordinate of this Tribunal in the case of Ponni Sugars Ltd. Versus Commissioner of C. Ex. [2008 (2) TMI 158 - CESTAT, CHENNAI] and Universal Cables Ltd. v. CCE [2002 (10) TMI 206 - CEGAT, NEW DELHI] to be per in-curium as they have not considered the principle of costing wherein packing cost of raw material forms part of the input price of the raw material, which is a direct cost for the manufacture of excisable output. Therefore, refund is granted with interest. - Decided in favour of appellant
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