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M/s. Jolly Containers Versus Commissioner of Central Excise & S.T., Daman

2015 (10) TMI 370 - CESTAT AHMEDABAD

Manufacture of Plastic Pallets - Captive consumption of pallets - exemption under Notification No. 67/95-CE - Held that:- the impugned Pallets are manufactured in the factory of the appellants and used within the factory of production in or in relation to the manufacture of final products. The said Pallets are also covered in the description of inputs, and final products manufactured by the appellants are also covered by the description of final products specified in the notification.Therefore, .....

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Cenvat credit availed, because it is not the Departments case that the inputs have been removed as such, without being put to use. There is no legal authority with the Department for such recovery. Also it is seen from the debit notes that the appellant has recovered only the cost of the material and not excise duty portion. - Decided in favor of assessee. - Appeal No. : E/1299/2007 - Order No. A/11358 / 2015 - Dated:- 15-9-2015 - Mr. P.K. Das, Member (Judicial) and Mr. P.M. Saleem, Member (Tec .....

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tive usage in the factory for handling of inputs, semi-finished goods and finished goods viz. Jolly Pack Containers, Refrigerator Parts, Washing Machine Parts, Air Condition Parts, Cutlery etc. When the pallets are used captively, the appellant did not pay duty and availed exemption from duty under Notification No. 67/95-CE dated 16.03.1995, as amended. (ii) The appellant received inputs and availed Cenvat credit of duty paid on such inputs. Appellant found some inputs defective and not fit for .....

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ices/ Debit Notes in certain cases. At the time of removal of their final goods, appellant did not show separately the freight charges in the invoices issued. 2. A show cause notice dated 07.01.2006 was issued in this regard. The adjudicating authority namely, Deputy Commissioner, Central Excise & Customs vide the impugned order-in-original adjudicated the matter and confirmed the demand of Central Excise duty of ₹ 54,140/- along with interest on plastic pallets under provisions to Sec .....

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. The appellants filed appeal before the Commissioner (Appeals) against the said order, and Commissioner (Appeals) vide impugned order-in-appeal dated 31.10.2007, upheld the order of the adjudicating authority. Aggrieved by the said impugned order-in-appeal, the appellant is before the Tribunal. 3. Heard both sides. The learned Advocate for the appellant submits that the impugned Pallets manufactured by them are admittedly used by them captively in their factory. It is his contention that it is .....

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h they have supplied. As regards the demand on freight charges, he submits that the issue is settled and freight charges are not to be included in the assessable value. He also cited case laws in his favour. On the other hand, learned Authorised Representative for the Revenue strongly refuted the arguments advanced by the learned Advocate and draws our attention to the findings of the adjudicating authority and the Commissioner (Appeals). 4. For better appreciation of the issue, Notification No. .....

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ion; (ii) goods specified in column (2) of the Table hereto annexed (hereinafter referred to as inputs) manufactured in a factory and used within the factory of production in or in relation to manufacture of final products specified in column (3) of the said Table; from the whole of the duty of excise leviable thereon which is specified in the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) : Provided that nothing contained in this notification shall apply to inputs used in or in rel .....

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xtent of the duty of excise payable on the value of the packaging materials is being availed of for packaging any final products; (ii) packaging materials or containers, the cost of which is not included in the assessable value of the final products under section 4 of the Central Excises and Salt Act, 1944 (1 of 1944). TABLE Sr. No. Description of inputs Description of final products (1) (2) (3) 1. All goods falling within the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), other th .....

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Central Excise Tariff Act, 1985 (5 of 1986), other than the following, namely, - (i) goods classifiable under any heading of Chapter 24 of the Schedule to the said Act; (ii) goods classifiable under heading Nos. 36.05 or 37.06 of the Schedule to the said Act; (iii) woven fabrics classifiable under Chapter 52 or Chapter 54 or Chapter 55 of the Schedule to the said Act. 5. It is observed from the above that the goods specified in Column -2 of the Table to the notification, when manufactured in the .....

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s specified in Column -3 of the notification. It is also observed that the adjudicating authority has observed. I find that the appellants have used the Pallets in the factory premises for keeping their other finished goods viz., Jolly Pack Containers, Refrigerator Parts, Washing Machine Parts etc. and not for excisable activities. It is therefore, clear that the impugned Pallets are manufactured in the factory of the appellants and used within the factory of production in or in relation to the .....

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Mumbai) and in the case of ACE Glass Containers Limited vs. CCE, Meerut-1 - 2010 (250) ELT 110 (Tri. Del.) has held that racks and trolleys, and Plastic crates, respectively, manufactured by the appellants were used in or in relation to the manufacture of final goods would be eligible for the benefit of Notification No. 67/95-CE (supra). 6. As regards the Debit Notes for ₹ 6,280/-, from the documents submitted along with the memorandum of appeal, we find that the claim is made by the appe .....

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for the same and hence the demand is not justified. The Hon ble Delhi High Court in the case of Ashi India Safety Glass Limited vs. UOI - 2005 (180) ELT 5 (Del.) has held that when the material is used in the manufacturing process and merely because at a later point of time after the material has undergone the process of manufacture, it was found defective and rejected or part of the input being found defective and rejected, this is no ground for denying the benefit. The Hon ble Tribunal in the .....

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