Appellate Tribunal upholds Modvat credit for packing material in Texturised Yarn

The Appellate Tribunal CESTAT, Mumbai rejected the Revenue's appeal challenging the Commissioner (Appeals) order allowing Modvat credit on duty paid for packing material used in Texturised Yarn packing. The Tribunal held that the inclusion of packing cost in the assessable value does not impact credit eligibility as goods are assessed based on Tariff value. The appeal was dismissed.

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The Appellate Tribunal CESTAT, Mumbai rejected the Revenue appeal challenging the Commissioner (Appeals) order allowing Modvat credit on duty paid for packing material used in Texturised Yarn packing. The Tribunal stated that since goods are assessed based on Tariff value, the packing cost inclusion in assessable value does not affect credit eligibility. The appeal was dismissed.

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