COMMISSIONER OF CENTRAL EXCISE Vs. PONDS (INDIA) LTD.

JUDGEMENT

(1.) This appeal filed by the Revenue is directed against the Order -in -Appeal No. 353/2003 (Pondicherry), dated 21 -7 -2003 passed by the Commissioner of Central Excise (Appeals), Chennai by which the Commissioner has allowed the appeal of the assessee.

(2.) Brief facts of the case are that the assessee -respondents are engaged in the manufacture of Cold Cream falling under CSG No. 3304 of the CETA, 1985. The assessee availed Modvat credit during the period from July 1996 to September 1996 on the basis of invoices issued to consignees other than M/s. Ponds (India) Ltd. Vadamangalam. Show cause notice was, therefore, issued which culminated in the order of adjudication passed by the Assistant Commissioner, by which he has disallowed Modvat credit of Rs. 98,652/ - wrongly availed and ordered recovery of the same under Rule 57 -1 and imposed a penalty of Rs. 1,000/ - under Rule 173Q apart from mandatory penalty of Rs. 66,627/ - under Rule 57 -1(4) of the Rules ibid. On appeal before the Commissioner (Appeals) he allowed the appeal and hence this appeal by Revenue.

(3.) Smt. R. Bhagyadevi, learned SDR appearing for the Revenue referred to the grounds of appeal and submitted that the assessee had availed Modvat credit on BOPP tape while they had also claimed abatement of packing material viz. COPT in which BOPP tape is packed. Therefore, they are not entitled to take Modvat credit on packing material in terms of Rule 57B(2)(iii). She, therefore prays for allowing the appeal.