COMMISSIONER OF CENTRAL EXCISE Vs. SWEET CONFECTIONERY

JUDGEMENT

(1.) HEARD both sides.

(2.) THE issue involved in this appeal is whether the Cenvat credit is admissible on duty paid coconut punch chocolates received in the factory and cleared in small pack along with coffee bite pack and the cenvat credit is utilized towards payment of duty on final products.

(3.) THE adjudicating authority has disallowed the cenvat credit to the tune of Rs. 1,36,357/ - along with interest under Rule 12 of Cenvat Credit Rules, 2002. On filing an appeal by the assessee, the Commissioner (Appeals) set aside the order by observing that the respondents were receiving the duty paid coconut punch chocolates in bulk packs, and thereafter they repacked the said coconut punch chocolates into small pouches and packed the said pouches along with coffee bite chocolates in bigger packs and paid Central Excise duty on the MRP printed on the said packs. The Board Circular has clarified that in such situations the MRP printed on the multi -piece packages would be considered for payment of duty. Further, the Commissioner (Appeals) has placed the reliance on the case law of Kothari Products Ltd. v. CCE and CCE v. M.P. Telelinks Ltd. 2004 (68) RLT 257 and held that there were no merits in the Department's appeal.