1996 (1) TMI 249

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.... Shaikh, JDR, for the Respondent. [Order] . -  These are two appeals filed by the common appellants M/s. Kashmir Vanaspati Ltd. against a combined Order-in-Appeal No. 342 & 343/CE/CHD/93, dated 20-6-1993 passed by Collector of Central Excise (Appeals), Chandigarh holding that Modvat credit is not admissible in respect of cello tapes used by the appellants for sealing the cartons contain....

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....an Lever v. CCE, 1994 (70) E.L.T. 595. There also the Tribunal was concerned with the question of admissibility of Modvat credit on the same very product, cello tape. He pleads that following the said decision the Bench may dispose of the appeals in their favour. 3.  Shri R.A. Shaikh, learned DR states that as held by the Collector (Appeals), the item in question Cello tape is not an input....

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.... Hence the moot question would be whether the disputed item cello tape is used in or in relation to the manufacture of vegetable product. Admittedly and mercifully, cello tape is not a raw material in the conventional sense of the term for the manufacture of vegetable product but then, for deciding eligibility to Modvat, it does not only look for the raw material or feedstock. Since the benefit is....

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....sed in the manufacture", there is no doubt that cello tape is an input in the manufacture of the final product. It would be wholly unjustified to restrict the benefit to only those items which are used as the immediate packaging in which the actual final product is packed or filled. Package is multi level process and there may be secondary packing or further stage packing depending upon the need o....