TaxTMI 
TaxTMI 
1998 (10) TMI 235
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....he department's appeal No. E/389/93. 2.  The assessee is a manufacturer of aerated waters and took pulp based beverages for the manufacture of these products wooden crates were one of the inputs. After glass bottles were notified in the relevant notification in the Rule 87 as inputs for aerated waters till 1-10-1987 and for food based beverages till 11-9-1991. On this date by amendment glass bottles were deleted from the table saying from the date onwards assessees will be eligible for taking credit as inputs. Therefore the assessee manufacturing the beverages as a franchisee of M/s. Parle Exports. In terms of the franchisee agreement it was required of the franchisee to use bottles of a particular shape and size, which were manufac....
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.... the Tribunal in appeal. In its order passed on 21-5-1990 the Tribunal found that for the issue to be decided certain factual appreciation was needed of the position showing the continuity of the flow of duty paid goods from the manufacturers of glass bottles to the appellants and their identity being established. It said "only when the factual position is confirmed, the department can accept the endorsed gate passes and given the credit of duty as indicated in the gate passes. For giving the Modvat credit not only the duty paid nature of the goods should be established but also the quantum of duty credit which is to be given. Hence the sanctity of these documents both for purpose of establishing duty paid nature of the goods as also the ex....
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....gave him an opportunity to produce the same but the documents produced do not lead us to a firm conclusion on the factual position." 5.   As to the question of goods being repacked, it indicated that looking into the original packing may not be relevant and form basis for arriving at the conclusion with regard to the identity of goods. It therefore, set aside the order of the Collector (Appeals). The continuity of the identity of the bottles was a matter for the Assistant Collector to decide. 6.   The Assistant Collector after considering the evidence such as franchise agreements and other data produced by the assessee held that it has not been established that the identity of the bottles continued from their departure till ....
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....purchase plain glass bottles from any other sources. It is also contended that the assessee had failed to establish the bottles it receives are those which are issued by their manufacturer and sent to the printers. It is further contended that gate passes are endorsed in pursuance of Board's instructions with necessary pre-conditons on credit to be taken on such cases that the goods must be received in original. Since the bottles are necessarily to be intact by the printers and repacked after this condition is satisfied. 8.   The advocate for the respondent contends that the Collector (Appeals) has reasonably established co-relation between the empty bottles and the bottles received by the assessee. He says that this is what was con....