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TMI Blog2002 (12) TMI 183X X X X Extracts X X X X X X X X Extracts X X X X ..... ants are the manufacturer of impregnated textile fabrics popularly known as rexin. The fabrics are packed in HDPE bags. The issue that arises for decision is whether the HDPE bags in question were eligible inputs for the purpose of Modvat credit in the context of exclusion contained at Serial No. 6 of Explanation to Rule 57A. This exclusion Clause may be read for ease of discussion. 3. The appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umentary evidence to show that these bags are made directly out of HDPE and not out of Strips or Tapes of plastics/HDPE. Moreover, HDPE bags whether made from virgin HDPE granules as stated by the assessee or from Strips or Tapes of Plastic would be classified under the Chapter heading 3923.90." Order-in-appeal confirmed the denial of the Modvat credit on the above basis. 4. It is the submission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gs do not come within the exclusion contained in Rule 57A. 5. The learned SDR has emphasised that no material has been produced by the assessee to show that the HDPE bags in question are not produced from woven fabrics. 6. The perusal of the records does not reveal any positive material or evidence supporting the contention that the HDPE bags in question have been made out of HDPE fabrics woven ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bags in question are made out of woven fabrics. There is also the Tribunal decision in the case of Indica Chemical Industries Pvt. Ltd. v. Collector of Central Excise, Meerut that HDPE bags, at least as a rule, do not come under exclusion contained in Rule 57A. 7. In view of what has been stated above, the appeal is allowed with consequential relief to the appellants after setting aside the impug ..... X X X X Extracts X X X X X X X X Extracts X X X X
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