1998 (7) TMI 222

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....ent. [Order]. -  This is an appeal arising from Order-in-Appeal No. 96/93, dated 21-10-1993 rejecting the appellants plea for availing Modvat credit on duty paid on the packing material used for packing of Phosphoric Acid on exports. The short reason given is that under Rule 57A(1)(b)(iii), the explanation states that "in packing material the cost of which is not included or had not bee....

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..... I have heard both the sides. The reasoning adopted by the learned Collector (Appeals) on both the counts is not correct in view of the fact that the department itself has clarified vide Trade Notice No. 62/86, dated 3-9-1986 that in respect of new units, the unit which had not made clearances in the financial year, the credit for packing materials will be available, if the cost of the same ....

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....without payment of duty on bond does not arise. He submitted that Modvat credit is eligible only in respect of final goods which has been suffered duty in terms of Modvat credit. On this point, the learned Counsel points out to Bombay Trade Notice No. 18/(M.P.)/General/(6)/1989, dated 23-2-1989 which clarifies availing of Modvat credit in respect of small scale units who have opted for full exempt....