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2010 (4) TMI 282 - HC - Central ExciseWrong availment of cenvat credit – tattoos / boomer tattoos - Manufacture of Cheqing Gum / Bubble Gum, Toffee and Candy containing cocoa - The revenue claimed that on physical examination, it revealed that the tattoos, in piece or roll form are stickers, made of paper/plastic having transferable printed figures and the children, by putting the tattoos on skin, are able to transfer the figure thereof on the parts of their bodies by applying hand pressure. Therefore, it was claimed that the assessee has mis-described the tattoos as inputs to avail an inadmissible cenvat credit. – Held that: - it is not the case of the assessee that tattoo material is used for initial packing in the real sense, rather the final product is wrapped in aluminum foils and other packing material, on which it (assessee) is claiming cenvat credit. The tattoos are additionally placed in the container of the product. Therefore, it cannot possibly be termed that the tattoo material is used as an initial packing material. In other words, the tattoo on the bubble gum is not at all required in the form of primary packing and the assessee is not entitled to claim cenvat credit in this relevant connection. - The use of tattoo material is an additional step to promote the trade and involves element of advertisement. Therefore, the assessee is not entitled for cenvat credit in this relevant direction as contemplated under Rule 2 of the Rules in the obtaining circumstances of the case. – in favor of revenue
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