ORDER
S.L. Peeran, Member (J)
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.
4. Appearing on behalf of the revenue Smt. R. Bhagya Devi submits that the sikkakai powder can be taken out without a bowl and spoon and they are not inputs or accessories within the meaning of Rule 57A as amended by Notification No. 28/95 CE (NT) dated 26.9.95 and therefore they are not entitled for modvat credit Ld. SDR submits that the judgments cited by the counsel are distinguishable as they pertain to the pharma industries where is is essential for the purpose of maintenance of measurement, accuracy as well as for keeping them in a sterilized condition in view of the nature of the product in order to avoid contamination whereas Sikkakai powder does not require any measurement, accuracy and does not have sterilization nature and therefore, it is neither accessories not components and hence they are not eligible inputs for modvat purposes.
5. I find that the appellants have made out a strong case in their favour inasmuch as spoon and bowl are the necessary items for the purpose of using sikkakai powder. It is necessary to avoid contamination from fungus and for effective use of the sikkakai powder. A similar matter came up in the case of Cheryl Laboratories Pvt. Ltd. Vs CCE Hyderabad as noted above and in the case of CCE Hyderabad Vs. Akhil Pharma Ltd. (supra) wherein plastic bowl was also supplied along with the main item and the benefit was extended.
6. Ld. SDR submits that in those cases, the spoons are required for measuring and required quantity to be taken while such a case does not arise in the present matter
7. Ld. Counsel submits that the very purpose of supplying bowl and spoon was to take the item to a quantified extent only and it was necessary to use only these items for the purpose of final consumption and wet hand should not be used to avoid contamination.
8. I agree with the learned Counsel that for use of Sikkakai powder, the items are necessary and the powder cannot be taken with bare fingers. The ratio of both the judgments noted supra apply to the facts of the case and therefore respectfully applying the same ratio, I set aside the impugned order and allow the appeal with consequential relief, if any.