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of <h1>Appellants' Right to Modvat Credit for Glass Bottles Upheld</h1> <h3>DEVYANI BEVERAGES LTD. Versus COLLECTOR OF CENTRAL EXCISE, MEERUT</h3> The Tribunal upheld the appellants' right to claim Modvat credit on decorated glass bottles used in manufacturing aerated waters, considering them as ... Modvat - Glass bottles - Valuation Issues involved: Disallowance of Modvat credit on decorated glass bottles; eligibility of credit under Rule 57A; denial of credit on tiles/ceramic goods and powder syrup and hardener.In the present case, the Commissioner of Central Excise (Appeals) disallowed Modvat credit on decorated glass bottles used by the appellants, manufacturers of aerated waters, citing that they are not considered capital goods under Rule 57Q. The Commissioner also stated that credit is not available under Rule 57A due to the appellants' failure to file a declaration under Rule 57G.Upon review, the Tribunal found that the declaration filed by the appellants under Rule 57Q is sufficient to extend credit on glass bottles, which are considered inputs under Rule 57A. The Tribunal emphasized that if the value of glass bottles is included in the assessable value of the final product, credit must be deemed available. This decision was supported by the Explanation Clause (iii) under Rule 57A and a relevant case law. The Tribunal dismissed the objection raised by the learned DR regarding the sufficiency of costing data provided by the assessees, as the Assistant Collector had confirmed the inclusion of glass bottle costs in the assessable value.Based on the Tribunal's decision and the Assistant Collector's findings, it was concluded that the appellants are indeed entitled to credit on glass bottles used for bottling aerated waters. However, regarding the denial of credit on tiles/ceramic goods and powder syrup and hardener, the Assistant Collector's decision stood final as no appeal was filed against it. Consequently, the Tribunal ruled that credit is not available for tiles/ceramic goods and powder syrup and hardener.In conclusion, the appeal was partially successful, with the Tribunal upholding the appellants' right to credit on glass bottles while denying credit on tiles/ceramic goods and powder syrup and hardener.
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