COMMISSIONER OF C. EX. Vs. CROMPTON GREAVES LTD.

JUDGEMENT

(1.) THE respondents manufacture Transformers and its parts falling under Chapter Heading No. 8504.00. They are also availing the Mod -vat credit on inputs under Rule 57A of the Central Excise Rules, 1944. During the month of June and July, 1998, they took credit of Rs. 2,079/ - on the input items viz., Support Angles & Bracket Lashing purchased by them. The Deputy Commissioner of Central Excise, Gwalior vide his Order dated 29 -5 -1999 denied them the Modvat credit of this amount on the ground that these items are essentially packing material. He observed that support angle and bracket lashing are fixed with the truck body for safe transportation of the transformer and cannot be said to be the material used for packing of the transformer apart from denying the Modvat credit, he also imposed a penalty of Rs. 250/ - on them.

(2.) THE party filed an appeal and the Commissioner (Appeals), Bhopal vide his Order dated 27 -5 -1999 allowed the appeal of the party. The Commissioner (Appeals) observed that these are essential items for making the transformers marketable. Therefore, these cannot be held as ineligible for availing the Modvat credit.