1997 (4) TMI 283

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....uch as High density Polyethylene blow moulding VB 33 used in the manufacture of 500 gms. Polyjars (Plastic containers) which are wholly exempt from payment of duty in terms of Notification 53/88, dated 1-3-1988 and hence the department was of the view that the credit had been wrongly taken, applying the provisions of Rule 57C of the Central Excise Rules, 1944. The appellants (M/s. Alok Plastics) were paying Central Excise duty on these polyjars, the final product, as far as they are concerned, even though the goods were exempt from duty. M/s. Brooke Bond India Ltd. purchased the polyjars and used them as packing material for their product, skimmed milk powder. Demands of duty were raised against both the appellants. The demands were confirm....

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....e settled legal position, it may be held that the action of M/s. Alok Plastics in paying duty on the polyjars and the action of the other appellant M/s. Brooke Bond Lipton India in availing of the credit was valid and legal and that the demands could not be sustained. The learned DR Shri Sethi reiterates the findings of the lower authorities. 3. I find that the basic issue for decision in these appeals is as to whether the assessee has the option to either avail of the benefit of exemption or to pay duty on the goods and clear them. If it is held that the option lies with the assessee, then the payment of duty on the polyjars and taking of credit of duty paid on the inputs used in those polyjars by M/s. Brooke Bond Lipton is an acti....