GUJARAT DYESTUFF INDUSTRIES Vs. CC AND CE

JUDGEMENT

(1.) he issue in dispute relates to the admissibility of modvat credit on HDPE bags used in the packing of the finished products of the appellants herein, in the light of the language of Sub -clause (vi) of explanation to Rule 57A(1) which excludes "bags or sacks made out of fabrics (whether or not coated, covered or laminated with any other material) woven from strips or tapes of plastics."

(2.) None appears for the appellants in spite of notice; hence we heard the learned SDR and perused the records. The only ground on which the order of the authorities below denying modvat credit of Rs. 3,99,339.67 being the credit availed during the period November 1992 to December 1993 is challenged is that the bags in question were HDPE circular laminated bags and not bags made out of fabrics woven from strips or tapes of plastics. This ground is not tenable for the reason that the exclusion is not restricted only to bags or sacks made out of textile fabric and any woven material is also a fabric. Since the bags in question are made from a material woven out of plastics, strips and tapes, they are clearly covered by the exclusion clause. We therefore uphold the impugned order and reject the appeal.