ORDER
Shri G.A. Brahma Deva
1. The short point to be considered in this case is whether credit is admissible on kraft paper which is converted into cartons and used for packing of the end product namely aluminium containers. It is a case of the Department that item as such was not used directly in the process of manufacture of the final product and accordingly modvat as such cannot be extended. On the other hand it was the case of the respondent that invariably aluminium containers are packed in cartons and the cost of the cartons used for packing are included in the price of the end produced. It is therefore clear that kraft paper received by them was not in ready to use condition for packing but the same should be treated as an input in the manufacture of the end product. The contention of the party was accepted by the Commissioner (Appeals). Hence this appeal by the Department.
2. It was also brought to my notice that the very issue had come up for consideration before the Tribunal in the case of Commissioner of Central Excise V/s Prithvi Fabrications Pvt Ltd in appeal No. E/802/95 and Tribunal as per Order No. 244 of 1996 dated 15.2.1996 decided the issue in favour of the party following the decision of the High Court in the case of Ponds India Limited (1993 (63) ELT 3). The respondent also submitted that even the reference application filed by the Department with reference to the said order has been dismissed as per order No. 200/96 dated 16.10.1996.
3.
On the other hand, Shri Thomas George appearing for the Revenue submitted that the Department has not accepted the verdict of the Tribunal and filed a writ petition before the High Court against the said order referred to above.
4.
I have carefully considered the submissions made by both sides. I find that the very issue has been considered by the Tribunal in the case referred to above following the ruling of the High Court in the case of Ponds India Ltd. Since the issue involved herein has also been considered and concluded by the Tribunal, I am not inclined to take different view in this matter. Accordingly following the earlier decisions the appeal filed by the Revenue is hereby dismissed.
(Pronounced and dictated in open Court)