TMI Blog1994 (3) TMI 243X X X X Extracts X X X X X X X X Extracts X X X X ..... sion of MODVAT Credit in respect of `paints which is brought by the Respondents for marking on the drums of wires and cables, before they are delivered to the Customers at the factory gate. This Bench appreciated that as per the terms of contract with the customers namely the Telecommunication Department, these wires and cables are to be marked with the particulars and specifications and also they are to be marked in specified coloured paints and these particulars could not be marked on the final product themselves; but they could be marked only on the wooden drums, which contain the wires and cables. This Bench allowed the MODVAT Credit holding that the department is not justified in rejecting the claim for Modvat on the ground that the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... If the ratio of the aforesaid decision is applied, the Tribunal would not have allowed Modvat benefit in respect of paint used only for painting wooden drums which is a packing material. In the case of Parle Products, this Bench disallowed Modvat credit for printing ink, which was to be used for printing the Aluminium foils on the ground that it is not per se identifiable as a packing material. This view has been taken despite the fact that the Supreme Court s decision in Eastend Paper Industries was cited before the Bench. Since paint is not used as a packing material and it is only used for marking on the wooden drums, which is a packing material, the ratio of the decision of Parle Product is clearly applicable and hence there is a need ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture of the final products namely cosmetics and in that view, Modvat Credit was disallowed by the South Regional Bench. Subsequently the Madras High Court, on a Reference, held that Modvat Credit is admissible even for materials, which are used for making packaging materials such as jars/containers. The Madras High Court have taken into account the various case laws including the decisions of the Supreme Court. In view of the aforesaid decision of the Madras High Court on reference on this point of law, the position is now settled by the decision of the Madras High court. Based on the decision of the Madras High Court in the above case of Ponds (India) Ltd., the Larger Bench in the case of Aswin Vanaspati Industries allowed Modvat Credit in ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
