TMI Blog1996 (1) TMI 249X X X X Extracts X X X X X X X X Extracts X X X X ..... two appeals filed by the common appellants M/s. Kashmir Vanaspati Ltd. against a combined Order-in-Appeal No. 342 343/CE/CHD/93, dated 20-6-1993 passed by Collector of Central Excise (Appeals), Chandigarh holding that Modvat credit is not admissible in respect of cello tapes used by the appellants for sealing the cartons containing pouches in which their final product vegetable product is pac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned with the question of admissibility of Modvat credit on the same very product, cello tape. He pleads that following the said decision the Bench may dispose of the appeals in their favour. 3. Shri R.A. Shaikh, learned DR states that as held by the Collector (Appeals), the item in question Cello tape is not an input in the manufacture of vegetable product but it is used only for closing the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in relation to the manufacture of vegetable product. Admittedly and mercifully, cello tape is not a raw material in the conventional sense of the term for the manufacture of vegetable product but then, for deciding eligibility to Modvat, it does not only look for the raw material or feedstock. Since the benefit is admissible to goods used in or in relation to the manufacture, one has to go by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture of the final product. It would be wholly unjustified to restrict the benefit to only those items which are used as the immediate packaging in which the actual final product is packed or filled. Package is multi level process and there may be secondary packing or further stage packing depending upon the need of the particular product and marketing and transport requirements The product to be c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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