1994 (8) TMI 160

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....ocate, for the Respondents. [Order per : R. Jayaraman, Member (T)]. -  Reference Application has been moved by the Revenue in respect of the order passed by the Larger Bench vide Order No. 2507/93, dated 2-12-1993. The issue considered by the Larger Bench was whether MODVAT Credit was admissible in respect of tin plates/sheets which were converted into metal containers without aid of po....

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....s, which are exempted from duty if manufactured without aid of power. They cannot be considered intermediate product in the manufacture of vanaspati. In the case of Ponds (India) Ltd., the Madras High Court has extended MODVAT benefit in respect of plastic granules used in the manufacture of plastic jars and bottles for packing cosmetics, mainly because of the fact that in the case of Cosmetics an....

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....st converted into plastic jars, which are exempted and used in the packing of cosmetics, should be eligible for MODVAT Credit. The issue dealt with by the Madras High Court and the issue dealt with by the Larger Bench in this case, is identifiable, excepting the materials being different. In the case dealt with by the Madras High Court the materials are plastic granules whereas in the case of Resp....

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....ing line. Hence we are not able to appreciate the argument of the Ld. SDR that metal container cannot be construed to be an intermediate product. So long as it is admittedly used for packing the final product and such packing materials have to be independently converted for packing the final product, the packaging containers have to be considered as an intermediate product in the line of manufactu....