AMRUTANJAN Vs. COLLECTOR OF CENTRAL EXCISE

JUDGEMENT

(1.) THE facts in all these six appeals are identical. The appellants M/s Amritanjan Ltd. manufacture P or P medicines. For this they received duty paid glass battles from M/s Darshak Ltd., Baroda who in turn received them from M/s Alembic Glass Factory, Baroda the manufacturers of glass bottles. M/s Darshak received the bottles in plastic crates from M/s Alembic, re -packed them in corrugated cartons and sent them to M/s Amritanjan by endorsing the gate passes received from M/s Alembic. In the case of M/s Charminar Bottling Co., the assessee manufactured Aerated Waters. The glass bottles for the packing of the aerated waters were manufactured and cleared on payment of Central Excise duty by M/s J.G. Glass Limited, Pimpri, Pune to M/s Arizona Printers and Packers (P) Ltd. who after printing, decorating and repacking, sent them to M/s Charminar by endorsing the gate passes originally issued by M/s J.G. Glass Ltd. Similarly, M/s Prabha Beverages (P) Ltd. manufactured Aerated Waters. They received duty paid glass bottles manufactured by M/s Ballarpur Industries Ltd., Pune after printing/decoration and re -packing of the same by M/s Arizona Printers and Packers under the endorsed gate passes of the original manufacturer of the glass bottles. The issue for consideration in these appeals is whether the appellants are eligible to take Modvat credit on the strength of the endorsed gate passes received by them. The Southern Bench of the Tribunal has referred these matters to the Larger Bench as they have observed conflict in the two earlier decision of the CEGAT on this issue. The North Regional Bench, permitted the Modvat credit in the case of Delhi Bottling Co. v. CCE - 1995 (78) E.L.T. 505 after the bottles were printed by a printer whereas the East Regional Bench in the case of India Paper Pulp v. Collector of Central Excise, Calcutta - 1994 (73) E.L.T. 752 (Tribunal) has held that where the consignment was broken and lumps were crushed by the first consignee, the modvat credit on the endorsed gate passes was not admissible.

(2.) WE have heard Shri Arvind P. Datar, Advocate for M/s Amritanjan and M/s Prabha Beverages. We also heard Shri Sanjeev Srivastava for the Revenue. We have carefully considered the submissions made before us.

(3.) IN terms of the first proviso to Sub -rule (2) to Rule 57G of Central Excise Rules, 1944, no credit shall be taken unless the inputs are received in the factory under the cover of a Gate Pass, an AR -I, a Bill of Entry or any other document as may be prescribed by the Central Board of Excise and Customs, in this behalf evidencing the payment of duty on such inputs. The Board in terms of the powers conferred under Rule 57G, has issued a Circular which in turn has been issued as Trade Notices by the various Central Excise Collectorates. Central Excise Collector, Calcutta -II Trade Notice No. 87/89 dated 5 -5 -1989 1989 (41) E.L.T. (T34) in this respect is reproduced below.