TMI Blog2002 (3) TMI 116X X X X Extracts X X X X X X X X Extracts X X X X ..... al to the present dispute are that the appellant undertook the manufacture of Gillette Presto International (GPI) razors as a job work from ISPL. All the parts and materials required for the manufacture of GPI razors were received by the appellant from M/s. ISPL. The appellant also took Modvat credit of the duties paid on these parts and materials and used that credit for payment of duty on the final product. The process of manufacture of GPI razors is to assemble a handle and twin blade into a razor and to pack the assembled razor. 2.1. As a sales promotion measure, M/s. ISPL decided to supply one GPI razor free to buyers of a tuck of five "7 O'clock Permasharp Stainless Steel Blades". For this purpose, a tuck each of "7 O'clock Permasha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of the tucks of 7 O'clock blades. The order has also demanded differential duty arising on account of holding that duty paid on the blades is not available as input credit for discharging duty on blades. 4. In the present appeal it is submitted on behalf of the appellant that the tuck of 7 O'clock blade and GPI razor is a combination pack and that the combination pack is required to be dealt with together as a manufactured product and duty assessed. It has been explained that the manufacture of the combination pack involved assembly of the razor from its parts and then blister packing of the razor along with the tuck of five 7 O'clock blades as a combination pack. The appellant also submits that since packing is a part of manuf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... GPI razor. Appellant has contended that the authorities were not right in assessing the GPI razors adopting the MRP of Rs. 10/- per piece, since the combination packs were bearing MRP of Rs. 23/- and not Rs. 10/-. They have submitted that the assessment should have been under Section 4 of the Central Excise Act and not under Section 4A of the Act. It has further been contended that the fact of free supply of GPIs and the price of the combination pack being the same as that of 5 blades are not relevant to the question of eligibility for Modvat credit inasmuch as every manufacturing activity need not lead to value addition. The appellant has also submitted that imposition of penalty was not justified as the case did not involve any contumacio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k of 7 O'clock blade and demand of duty on the GPI razors have been correctly done. The learned SDR has submitted that the appellant's ineligibility for Modvat credit in respect of the blades remains settled by the decision of this Tribunal in the case of Jaggsonpal Pharmaceuticals Ltd. v. CCE. New Delhi - 1997 (92) E.L.T. 414. With regard to the valuation of GPI razors, the learned SDR has pointed out that the blades in question were the same as other GPI razors sold at the MRP of Rs. 10/- per GPI razor and that justified adoption of the MRP of Rs. 10/- and working out assessable value by allowing permissible deduction since razors and blades were required to be assessed based on their MRP under Section 4A of the Central Excise Act. 6. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disposable syringe and needle which were blister packed with the ampoule of medicine was an input in the manufacture of the medicine. That claim was rejected by the Tribunal holding that the syringe and needle are not inputs in the manufacture of medicine. In that case, syringe and needle were useful accessories in dispensing the medicine sold together with them. Unlike that, in the present case, the 7 O'clock blade in question is not even an accessory for the disposable twin blade razor as blade in question is not compatible with the razor. In these circumstances, we agree with the Revenue that the blades cannot be treated as input and credit allowed. We find that the decisions of the Apex Court cited by the appellant on the issue of eligi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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