TMI Blog2009 (8) TMI 275X X X X Extracts X X X X X X X X Extracts X X X X ..... mendment had the effect of denying exemption to an intermediate product captively consumed in the further manufacture of a final product, where the manufacturer chose to avail MOD VAT credit on inputs used in the manufacture of their dutiable final products. – Packing materials specially designed for toys and games and classifiable under same headings – packing materials also to be considered as specified goods for SSI purpose – Hence, we hold that value of clearance of the blisters and boxes are not to be included in the aggregate value of first clearances of final product specified under Notification No. 8/01-C.E., for the period of dispute. In other words, the basis of the demand of duty confirmed by the original authority does not exist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re otherwise dutiable. In their view, the value of clearance of these goods also should be added to the aggregate value of first clearances of the goods specified in the SSI Notification. If such addition is made, the assessee (respondent) will be found to have exceeded the limit of Rs. 1 crore earlier in point of time and consequently they would be liable to pay duty on the value of clearances in excess of this limit of Rs. l crore, which stands quantified at Rs. 6,71,868/-. The learned JDR has reiterated the above case of the Revenue. 2. The learned Counsel for the respondent refers to the provisions of the above Notification and submits that the Notification did not warrant addition of value of an intermediate product to the aggregate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consideration to the submissions, we have not found any merit in this appeal of the department. As rightly pointed out by the learned Counsel, the respondent never claimed MODVAT credit on their inputs and, therefore, the amendment brought to Notification No. 67/95-C.E., referred to by the learned JDR, is of no consequence. That amendment had the effect of denying exemption to an intermediate product captively consumed in the further manufacture of a final product, where the manufacturer chose to avail MOD VAT credit on inputs used in the manufacture of their dutiable final products. The assessee in the present case never took any such credit on inputs used in the manufacture of any of their final products. 4. Chapter Note 3 referred to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd even if any claim made for such benefit was inadmissible on account of the final products being chargeable to 'nil' rate of duty or exempt from duty under a general exemption notification. Similarly, where the intermediate product captively consumed as input in the manufacture of final product by SSI unit prior to 3-12-1997 came to be 'specified goods' under Notification No. 16/97-C.E., it was also eligible for SSI exemption, whether or not the benefit of Notification No. 67/95-C.E. was claimed by the manufacturer and even if any claim made for such benefit was inadmissible on account of the final product being exempt from duty otherwise than under SSI notification." In the above order, the Tribunal relied on the apex Court's judgment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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