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2007 (12) TMI 228 - HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARHCenvat/Modvat - Whether Modvat credit is admissible under Rule 57A of the Central Excise Rules, 1944, on glass bottles and plastic crates as packing material for aerated water when the value thereof is not included (i.e. of bottles/crates as such neither declared nor could be ascertained) in assessable value of the final product i.e. aerated water? Held that:- There is no merit in these petitions and the same are liable to be declined. We find that under Rule 57A of the Rules, Modvat credit is admissible on the specified inputs used in the manufacture of final product. Explanation (iii) to Rule 57A of the Rules define that inputs does not include packaging material if its value has not been included during the preceding financial year in the cost of assessable value. The Tribunal has categorically found as a fact that the cost of packing material has been included in the assessable value although on instalment basis and, therefore, the assessees' are entitled to Modvat credit of duty. The plea taken by the assessees' that the cost of glass bottles and plastic crates was included in the aerated water could not be rebutted by the revenue. W.P. dismissed.
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