TMI Blog2004 (9) TMI 465X X X X Extracts X X X X X X X X Extracts X X X X ..... dent. [Order per : C.N.B. Nair, Member (T)]. The appellant is a job worker for Gillette India Ltd. It receives parts from Gillette India Ltd. and assembles razors out of them. Those razors are subject to excise duty. The razors are packed along with free supply (from Gillette) blades by blister packing. While paying duty on razors, the appellant claimed Cenvat credit in respect of duty p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 03 (151) E.L.T. page A297]. 2. The contention of the appellant in the present appeals is that the earlier order of the Tribunal is not applicable to the present case, inasmuch as that order was in regard to Modvat credit and the present dispute is in regard to Cenvat Credit. It is being pointed out that definition of input under Cenvat Credit Rules, 2001 specifically includes accessories of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lready noted, these razors are blister packed along with blades. About the free supply blades, the packs state FREE 2 SAVAGE BLADES , FREE 2 WILKINSON SWORD Premium Blades . FREE 5 BLADES WORTH Rs. 23.50 , FREE 1 WILKINSON STAINLESS BLADE . It is, thus, clear from the packings that the items under sale at the declared MRPs are safety razors and blades are under free supply. It is noted that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essed. We held that the blades which were supplied free cannot be treated as input in the manufacture of razors under assessment and no relief was allowed. The position is the same in the present case also despite the fact that blades in the present case qualified to be accessories for the razors, since both products are compatible. Clearly, the issue for consideration is the status of free supply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tated above, we do not find any justification to differ with our earlier decision in the case of G.S. Enterprises - 2002 (144) E.L.T. 387 (Tri.). Accordingly, the appeals fail on the issue of claim for Cenvat credit. However, relief is merited with regard to penalty, since the mere claiming of CENVAT relief involved no offence. Accordingly, the penalty imposed is set aside and the appeals succeed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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