TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Appeal denied for Modvat credit on plastic containers used for packing pan masala pouches</h1> The Tribunal dismissed the appeal, upholding the Commissioner (Appeals) order that denied Modvat credit on plastic containers used for packing pan masala ... Modvat credit Issues:- Modvat credit on plastic containers used for packing pan masala pouches- Interpretation of Notification No. 5/97-C.E. (N.T.), dated 1-3-1997- Legal validity of Commissioner (Appeals) order disallowing Modvat creditModvat Credit on Plastic Containers:The appellants appealed against the order-in-appeal that reversed the Assistant Commissioner's decision allowing Modvat credit on plastic containers used for packing pan masala pouches. The appellants argued that as the containers were used for packing the product, they were entitled to the credit. The Assistant Commissioner had dropped the demand against them, but the Revenue challenged this decision before the Commissioner (Appeals), who set it aside. The appellants contended that the containers were essential packing material and cited various legal precedents to support their claim.Interpretation of Notification No. 5/97-C.E. (N.T.), dated 1-3-1997:The crux of the issue revolved around whether the plastic containers used by the appellants for packing pan masala pouches qualified as retail packages under the said notification. The notification fixed tariff values for retail packages of pan masala and defined a retail package as one meant for sale through retail agencies for individual or group consumption. The Tribunal observed that the containers were not used for direct packing of pan masala but for holding the retail pouches, which were the actual sale items. The containers were considered additional promotional material, not primary packing. The Tribunal analyzed legal precedents cited by both sides to determine the applicability of the notification to the case at hand.Legal Validity of Commissioner (Appeals) Order:The Tribunal examined the argument that the Commissioner (Appeals) exceeded the show cause notice's scope by not referencing Notification No. 5/97-C.E. (N.T.), dated 1-3-1997. It was concluded that the notices did refer to the notification, allowing the Commissioner (Appeals) to consider its implications. The Tribunal rejected the appellants' claim for Modvat credit on plastic containers, emphasizing that the containers did not constitute primary packing material as per the notification. Consequently, the appeal was dismissed as the Commissioner (Appeals) order was deemed legally sound and not subject to interference based on the detailed analysis provided.
TaxTMI 
TaxTMI 
