2009 (8) TMI 275

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....ys and Games during the period of dispute. Toys and games falling under Heading 95.03 were chargeable to 'nil' rate of duty and those falling under Heading 95.04 were dutiable. The respondent manufactured both categories. The toys were cleared in blister packs while the games were cleared in boxes, the blisters and the boxes having been manufactured in the same factory and captively consumed for the said purposes. During the period of dispute, the respondent availed SSI exemption under Notification No. 8/2001-C.E., dated 1-3-2001 without availing the benefit of MODVAT credit on the inputs used by them. The issue involved in this case is whether, for the purpose of computing the aggregate value of first clearances of the final products speci....

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.... Counsel has also claimed support from the Tribunal's decision in Gothi Thermoforming Industries v. CCE, Chennai & Pondicherry - 2007 (211) E.L.T. 97 (Tri.-Chennai), wherein a similar factual situation was considered and it was held that an intermediate product captively consumed in the manufacture of the final product by the SSI unit fell within the meaning of "specified goods" under Notification No. 175/86-C.E. and therefore the same was also eligible for SSI exemption, whether or not the benefit of Notification No. 217/86-C.E. or Notification No. 67/95-C.E. was claimed by the manufacturer. The learned Counsel has also referred to Note 3 to Chapter 95 of the Central Excise Tariff Schedule. In his rejoinder, the learned JDR refers to an am....

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....ecially designed for the toys and games respectively, are to be classified under the same headings as the toys and games. In other words, like the toys and games, the packing materials are also 'specified goods' for SSI purpose and consequently their value cannot be included in the aggregate value of clearances of the final product to see whether the SSI unit exceeded the limit prescribed under the SSI Notification. 5. A similar factual situation was considered by the co-ordinate Bench at Chennai in the case of Gothi Thermoforming Industries (supra). Para 6 of the Tribunal's decision reads as follow:- "6. It appears to us from the Apex Court's decisions that, where the intermediate product (input) captively consumed in the manufacture....