TMI Blog1994 (5) TMI 96X X X X Extracts X X X X X X X X Extracts X X X X ..... Excise Rules, 1944. The credit disallowed by the Collector, as above, had been taken by the Appellants on the inputs used by them in the manufacture of Paper and Board removed and used by them captively for packing of paper without payment of duty availing exemption under Notification 217/86-C.E., dated 2-4-1986. It was alleged and held against them that the packing and wrapping paper in the manufacture of which they had utilised the inputs were not intermediate goods and, hence the same were covered by the provisions of Rule 57D(2). Accordingly, the Modvat Credit taken was disallowed. To recover the amount equal to such credit which they had already utilised, notice was issued invoking the longer period of limitation on the ground of suppr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decisions. He also referred to Central Board of Excise Custom s letter F. No. 267/46/88-CX. 8, dated 18-1-1990 regarding the Modvat admissibility of inputs used for the manufacture of Caustic Soda lye captively used for paper manufacture even if it is exempt from duty. Reference was made to Rule 57D(2) and it is obvious that such Caustic Soda lye is treated as an intermediate product and an exempted intermediate product. In Ponds India Limited v. Collector of Central Excise, reported in 1993 (63) E.L.T. 3, plastic granules used in the manufacture of containers for packing the excisable cosmetic and toilet preparations were held to be eligible inputs in relation to such final products and the containers were treated as intermediate produc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... undertaken by each manufacturer and they cannot be given a static meaning. (4) Brooke Bond India Ltd. v. Collector of Central Excise - 1991 (55) E.L.T. 342 (SRB Tribunal) (5) Collector of Central Excise v. Indian Aluminium Company Ltd. - 1992 (59) E.L.T. 168 (Tribunal) - 1991 (36) ECR 376 (SRB Tribunal) (6) Jain Spun Pipe Company v. Collector of Central Excise - 1992 (62) E.L.T. 753 (Tribunal NRB) (7) United Cables v. Collector of C. Ex. - 1993 (48) E.L.T. 75 (WRB Tribunal) Modvat Credit admissible in respect of duty paid on rubber chemicals and synthetic rubbers forming part of the compound providing insulation to the wires and cables. Provisions of Rule 57D(2) were held to be applicable. Irrelevant that rubber compound was exem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The arguments advanced by the learned Counsel Shri Bagaria are totally accepted. The cases cited by him are fully applicable to the present case. The fact that the East End Paper Industries case related to wrapping paper used for packing/wrapping paper whereas the present case is related to the inputs used for manufacture of such packing paper does not affect the eligibility of such inputs for Modvat benefit. Packing and wrapping paper used for packing and wrapping paper to make the latter marketable is a material/component part in relation to such paper. This is the ratio of the East End case. Hence, the inputs used for such paper is an input used in relation to the manufacture of the final product, packed paper. The interpretation of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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