Appellate Tribunal allows Modvat credit on packing charges for input materials under Chapter 70

The Appellate Tribunal CEGAT, New Delhi ruled in favor of the appellants, allowing them to avail Modvat credit on duty paid for packing charges on input materials under Chapter 70. The Tribunal set aside the Commissioner (Appeals) order denying Modvat credit, stating that packing charges are considered inputs under Rule 57A. The appeal was allowed with consequential relief.

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The Appellate Tribunal CEGAT, New Delhi ruled in favor of the appellants who manufacture glass articles under Chapter 70, allowing them to avail Modvat credit on duty paid for packing charges on input materials. The Tribunal set aside the Commissioner (Appeals) order denying Modvat credit, stating that packing charges are considered inputs under Rule 57A. The appeal was allowed with consequential relief.

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