2010 (5) TMI 212

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....under Chapter sub heading 39.2390 and used the said bags for packing imported raw sugar at Kandla Port Area. The appellants transported the packed raw sugar to the factory and stored them till they were issued for further processing and the processed sugar was cleared on payment of duty. The appellants took credit of Central Excise duty paid on PP woven bags used for packing the raw sugar imported. The original authority in pursuance of the show cause notice dt. 22-11-05 held that they are not eligible for the credit and accordingly, ordered recovery of duty of Rs. 77,813/- along with interest and imposed equal amount as penalty. Commissioner (Appeals) has upheld the order of the original authority. 4. The learned Chartered Accountant appe....

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....he case of Vikram Cement v. CCE, Indore [2006 (194) E.L.T. 3 (S.C.)} to contend that use within the factory is not essential, as in the said case the Hon'ble Supreme Court has allowed the credit of duty paid on inputs and capital goods used in the mines area which was different from the factory premises He also relies on the decision of the Tribunal in the case of Amaravathi Co-operative Sugar Mulls Ltd. v. CCE, Coimbatore reported as [2008 (89) R.L.T. 401 (CESTAT-Che.)] wherein it has been held that Cenvat credit of duty paid on HOPE bags used for packing of final products outside the factory premises have been allowed In the light of ratio of the above decisions, he submits that the appellants are eligible for Cenvat credit 5. Learned S....

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....finding of the lower authorities on the scope of provisions of Rule 2(k) of Cenvat Credit Rules 2004 therefore, does not call for interference The decision of the Hon'ble Supreme Court in the case of Vikram Cement relate to use of certain inputs and capital goods in the captive mines attached to the cement plant and may not be relevant to the facts of the present case. The decision in the case of GKN Sinter Metals Ltd. and Banco Products (India) Ltd. relate to plastic crates which were subject to repetitive use in transportation and storage within the factory of production. In those cases, the use of the said goods in the factory of production was not in dispute unlike in the present case. The decision of the Tribunal in the case of Amarava....