G.S. ENTERPRISES Vs. COMMISSIONER OF CENTRAL EXCISE,

JUDGEMENT

(1.) THE appellant is a manufacturer of shaving razors. The present appeal is in regard to Gillette brand disposable shaving razors manufactured on job work basis for M/s. Indian Shaving Products Ltd. (ISPL) during the period March, 1999 to November, 1999. As the issue raised in all these appeals is the same, they were heard together and are disposed of under this common order.

(2.) FACTS material to the present dispute are that the appellant undertook the manufacture of Gillette Presto International (GPI) razors as a job work from ISPL. All the parts and materials required for the manufacture of GPI razors were received by the appellant from M/s. ISPL. The appellant also took Modvat credit of the duties paid on these parts and materials and used that credit for payment of duty on the final product. The process of manufacture of GPI razors is to assemble a handle and twin blade into a razor and to pack the assembled razor.

(3.) IN the impugned orders, the Central Excise authorities have held that the appellants had wrongly availed Modvat credit in respect of "7 O'clock blades". It is their contention that the tuck of 7 O'clock blade is a fully manufactured product in itself and it is not an input in the manufacture of razor blades inasmuch as the blades are not used in or in relation to the manufacture of GPI razor. The impugned order has therefore, disallowed the Modvat credit taken in respect of the tucks of 7 O'clock blades. The order has also demanded differential duty arising on account of holding that duty paid on the blades is not available as input credit for discharging duty on blades.