R.K. HERBALS PVT. LTD. Vs. CCE

JUDGEMENT

(1.) THIS appeal arises from Order -in -Appeal No.232/2002 dated 26.11.2002 passed by the Commissioner (Appeals) Trichy upholding the order -in -original denying modvat credit on bowl and spoon which were supplied along with 'Herbal Sikkakai Powder' The Range officer had found that these items were not necessary inputs/accessories for the manufacture of their final product Sikakkai Powder.

(2.) HEARD Ld. Counsel Shri J. Shankarraman for the appellant and Ld. SDR Smt. R Bhagya Devi for the respondent.

(3.) IT is contended that the value of the plastic bowl and spoon are included in the value of herbal sikkakai powder and the plastic bowl and spoon are packed in the iar where the herbal sikakkai powder is also packed. The Counsel submitted that plastic bowl and spoon are accessories because they are necessary to avoid contamination from fungus as the said item should not be used with wet hands. They are accessories within the meaning of Rule 57A as amended by Notification No. 28/95 CE (NT) dated 26.9.95 and Rule B (i) (iv) of the rules ibid Therefore, the amounts which have been taken as credit is not required to be recovered from them and they cannot be imposed with penalty. In this connection. he relies on the judgment rendered in the case of CCE Hyderabad Vs Akhil Pharma Ltd., 2001 (127) ELT 755 and the order No. 2655/98 dated 30.12.98 in the matter of M/s. Cheryl Laboratories Pvt. Ltd. Vs. CCE Hyderabad. In view of the above submissions. he pravs for applying the same ratio of the judgments cited supra and for allowing the appeal.