COMMISSIONER OF CENTRAL EXCISE Vs. DENSO INDIA LIMITED

JUDGEMENT

(1.) In this appeal which has been filed by the Revenue against the impugned Order -in -Appeal, the issue relates to availability of the Modvat credit on the plastic crates used as packing material by the respondents. The Commissioner (Appeals) has allowed the Modvat credit after reversing the Order -in -Original of the adjudicating authority who has confirmed the duty demand, by following the ratio of law laid down in Black Diamond Beverages Ltd. v. CCE, 1997 (91) E.L.T. 422, CCE v. Paras Pharmaceutical (P) Ltd. 1999 (108) E.L.T. 580 and in G. Claridge and Co. v. CCE, 1991 (52) E.L.T. 341 (S.C.) wherein it has been consistently ruled that the Modvat credit is available on the packing material if the cost is included in the value of the final products. In the instant case, the cost of the plastic crates which had been used by the appellants as packing material for safe transportation of final products i.e. auto electical parts, from place of manufacturer to the place of customers and brought back to the factory for reuse, has been included in the value of the final products. Therefore, the Commissioner (Appeals) has rightly, after following the ratio of law laid down in the above said cases, allowed the Modvat credit to the respondents. I do not find any illegality in the order passed by the Commissioned (Appeals). The appeal of the Revenue is dismissed being without merits.