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TMI Blog2007 (12) TMI 385X X X X Extracts X X X X X X X X Extracts X X X X ..... id on the container used for transporting capital goods i.e. forging press, inasmuch as the container falling under CSH 7310 was not specified under Rule 2 of the Cenvat Credit Rules, 2002 (hereinafter referred to as the Rules), Cenvat credit of Rs. 21,85,553/- on machines used in tool room for manufacture of dies, inasmuch as the dies were cleared for captive consumption within the factory under Notfn. No. 67/95-C.E. as amended and the credit of Rs. 90,003/- on removal of two lathe machines as 'scrap and machinery spares' inasmuch as when the capital goods, on which Cenvat credit has been taken are removed as such from the factory, the manufacturer of final product shall pay an amount equal to the credit availed in respect of such capital ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llowed on container used in transportation of the capital goods; (ii) that when capital goods on which Cenvat credit has been taken are removed as such from the factory, the manufacturer of final products shall pay an amount equal to the credit availed in respect of such goods. The adjudicating authority has misconceived the fact that the machinery cleared after use cannot be treated as scrap and cannot be cleared on payment of duty as no manufacturing activity has taken place. It has to be treated as clearance 'as such' only and the assessee should have reversed the credit instead of paying duty on scrap. 2.1 In response to the above appeal, the respondent filed cross-objection vide their letter dated 3-8-2007 wherein, inter al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; As per Rule 9(a) of the Customs Valuation Rules, the cost of containers which are to be treated as being one for customs purposes with the goods in question and that the cost of packing whether for labour or for materials will form part of value of such goods imported. (vi) When Customs duty has been paid on the forging press by adding the value of containers, the value of such container forms intrinsic value or a value which is part and parcel of imported goods which is assessed to duty under the Customs Act, 1962. (vii) Notwithstanding the above, the department cannot urge two different stands by including the value of containers for valuing the forging press imported as forming part of assessable value u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nbsp; Madura Coats Pvt. Ltd. v. CCE, Tirunelveli - 2005 (190) E.L.T. 450 (Tribunal-Bang.) (ii) Salona Cotspin Ltd v. CCE, Salem - 2006 (201) E.L.T. 592 (Tribunal- Chennai) (iii) Supreme Industries Ltd. v. CCE, Pondicherry - 2006 (196) E.L.T. 360 (Tribunal-Chennai). 3. Personal hearing was granted on 13-12-2007, Shri Ratan Ingawale, AGM of the Respondent-company appeared before me at 11.00 a.m. From the departmental side Shri Yogish Kumar, Superintendent was present. They reiterated the submissions made in their respective applications. Shri R. Ingawale also undertook to produce copy of Sales Invoices covering the sale of old machine as scrap within two days. As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nded that the capital goods namely forging press were specified item as capital goods under Rule 2 of the Rules. The contention of the respondent is tenable when we look into the whole issue in proper prospective. What was imported was capital goods viz. forging machines which have been specified under Rule 2 of the Rules as capital goods. Secondly, the capital goods could not be brought until and unless the same are put in containers. It is like any other goods which are packed in packing materials and the cost of which is included in the assessable value. In the same way, the cost of the containers were added in the assessable value of forging press and the duty was paid thereof. Therefore, as part of the packing material the duty paid on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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