(1.) THE Revenue has filed the above appeal against the order of the Commissioner of Cen. Excise(Appeals), Mumbai holding that gummed taps used for packing of assessee's final product viz. aluminium printed collapsible tubes in cartons, are admissible input under Rule 57A of the Central Excise Rules. it is the contention of the Revenue that gummed tapes are not used in or in relation of the final product and they are only used to prepare the packing materials viz. cartons and, therefore, credit is not admissible on gummed tapes. On the other hand, it is the contention of the assessee that gummed tapes are used for sealing the cartons in which the final products are packed and definitely with in the meaning of inputs in the nature of packaging materials. The assessee cites the decision of the Tribunal in the case of Hindustan Lever Ltd. v. CCE, Calcutta,. II[70)E.L.T. 595] which supports their contention. The assessee also submits that after the present demand was raised, subsequent show cause notice were issued and have been adjudicated upon by the Dy. Commissioner dropping the proceedings initiated on the ground that gummed tapes were not covered by the definition of inputs.
(2.) I have carefully considered the rival submissions. I agree with the assessee that gummed tapes are in the nature of packing material and since Rule 57A defines inputs as including packing materials, the item in dispute is eligible to credit in terms of Rule 57A., I therefore, uphold the impugned order and reject the appeal.