2004 (6) TMI 125

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..... against the order of CCE(A), who has found & ordered - "3.............There is no dispute that the appellants undertake the process of "sterilization" on fully manufactured products i.e. "Syrings & needles" which are disposable. There is no dispute that the product were cleared under the brand name "BEHRING" belonging to a third person/ manufacturer. The vital issue which needs determination is .....

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..... d needles, although after sterilization the value of the product gets enhanced. Therefore, I am not inclined to accept that there some kind of transformation taken place. The words 'sterile' and 'non-sterile' merely state the quality of the manufactured product. The Section 2(f) of the C.Ex. Act, 1944 defines and includes the process which is incidental and ancillary process. There is no mention o .....

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..... to be essential for the manufacture before the product could be marketed and that the process was essential and incidental is covered under Rule 2(f) of the rules, to be amounting to manufacture. (ii)       Thereafter relying upon State of Tamil Nadu v. Pyare Lal Malhotra [1983 (13) E.L.T. 1582 (S.C.) and Laminated Packings, 1990 (49) E.L.T. 326 he held that duty of .....

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..... permissible. Reliance is well placed by Ld. DR on the case of Laminated Packings [1990 (49) E.L.T. 326 (S.C.)] and Kapri International [2002 (142) E.L.T. 10 (S.C.)] and Shri Krishna Keshav Laboratories Ltd. [1999 (105) E.L.T. 117 (Tri.)]. The reliance of the ld. Advocate on the case of Kiran Spinning [1988 (34) E.L.T. 5 (S.C.)] especially para 4 will thereof, not help the case of the respondents, .....

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..... p;    We find however merits in the plea of the ld. Advocate of the Respondents for benefit of credit since duty liability to duty is being upheld. The issue is no longer Res Integra. Reliance of the ld. Advocate on the case of Vivek Re-rolling Mills [1994 (73) E.L.T. 660 (Tri.)] to allow eligibility of Modvat credit claim is well founded and is to be granted. However in absence of .....

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