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2015 (10) TMI 279 - CESTAT CHENNAI

2015 (10) TMI 279 - CESTAT CHENNAI - TMI - Denial of CENVAT Credit - Credit availed on detergent soap which was supplied free along with detergent powder - MRP based valuation - Held that:- respondents had packed free supply of one detergent soap (valueRs.5 per piece) inside the washing powder of 500 gms. and correctly declared the net weight of the combi-pack of 575 gms. and discharged duty on the detergent powder. The respondents are rightly covered under Section 2(f) (3) of Central Excise Act .....

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eld by the Hon'ble Gujarat High Court - Decided in favour of assessee. - Appeal No. E/395/2009 - Dated:- 17-3-2015 - R. Periasami, Member (T),J. For the Appellant : Mr K P Muralidharan, AC (AR) For the Respondent : Mr B N Gururaj, Adv. ORDER Per: R Periasami: Revenue filed appeal against the impugned order dt. 13.4.2009 passed by Commissioner (Appeals). The facts of the case are that the respondents are manufacturer of Kite Detergent Powder falling under Chapter 34 of the CETA'85 and getting .....

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ed free along with detergent powder. The adjudicating authority confirmed the demand of cenvat credit of ₹ 7,22,342/- along with interest and imposed equivalent penalty. Respondents preferred appeal and Commissioner (Appeals) in his impugned order allowed the appeal and set aside the order. Hence Revenue filed the present appeal. 2.Heard both sides. 3. Ld. A.R reiterates the grounds of appeal and submits that detergent cake is not an input for manufacture of detergent powder and they are n .....

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Tri.- Mumbai) - Perfetti Van Melle India Pvt. Ltd. Vs UOI -2010 (254) ELT 620 (P&H) 4.On the other hand, Ld. Advocate for the respondent reiterated the findings of the impugned order and submitted that Commissioner (Appeals) has rightly allowed their appeal. He further submits that their goods is falling under the category after the amendment of Section 2 (f) of Central Excise Act, 1944 where labelling and relabeling amounts to "manufacture" and it is covered under the third Schedu .....

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e free supply inside the detergent powder and packed in a single pack on which the M.R.P has been printed and correctly discharged duty under M.R.P. He further submits that Commissioner (Appeals) has rightly relied the Tribunal's decision in the case of Lotte India Corporation Ltd. Vs CCE and other Tribunal's decisions. He relied the following case law :- Lotte India Corporation Ltd. Vs CCE Pondicherry 2008 (224) ELT 102 (Tri.-Chennai) - CCE Vs Gupta Soaps 2007 (213) ELT 372 (Tri.-Mumbai .....

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order has clearly discussed the issue at length and relied this Tribunal's decision in the case of Lotte India Corporation Vs CCE Pondicherry (supra). In the present case, Revenue has not disputed the fact that respondent has discharged central excise duty on the detergent powder packed in 500 grams and also not disputed the fact that respondents have discharged duty under Section 4A under M.R.P. price. As seen from the file, respondents had packed free supply of one detergent soap (valueRs .....

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j.) wherein the Hon'ble Gujarat considered this Tribunal's decision passed in the case of Lotte India Corporation (supra) and dismissed the Revenue's appeal and upheld the Tribunal's order. The relevant paragraphs of the Hon'ble Gujarat High Court judgement (supra) are reproduced as under:- "10. We have examined this reasoning of the Tribunal in view of the provisions contained in Cenvat Credit Rules, 2004. Rule 3(1) of the Rules says that a manufacturer or producer of f .....

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There is no dispute about the fact that on toothbrush, excise duty has been paid. The toothbrush is put in the packet along with the tooth paste and no extra amount is recovered from the consumer on the toothbrush. Considering the definition given in the Rules of "input" and the provisions contained in Rule 3, we are of the view that the Tribunal is justified in taking the view that the credit is admissible in the case of the respondent-assessee. 11. The view taken by the Tribunal is .....

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