2000 (12) TMI 279

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....m the goods are transferred after manufacture and packing. The duty is being discharged by the manufacturers, with the relation to the maximum retail price, printed on the 1 Kg packs, as per the provision of notification issued under Section 4A of the Central Excise Act, 1944. 2. The Commissioner (Appeals) in the impugned order had found - ".....There is no provision in the Modvat Rules which debars taking Modvat credit in such situation. Interpretation sought to be given in the impugned order to Rule 57B(2)(v) is ill founded and without any basis as borne out by very wordings which are reproduced in the previous paras. It also cannot be said that Section 4 includes the cost of only retail packing. Assessment under Section 4A has....

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....material and the final product is not removed without such bags, it has to be considered as essential for marketing the goods under consideration as far as the wholesale market is concerned. Therefore, relying on the G.O.I. v. MRF - 1995 (77) E.L.T. 433, 462 (S.C.) when it is fact that HDPE are necessary in order to pack the goods in the condition in which they are generally sold in the wholesale market, at the factory gate its cost is therefore required to be added for purposes of Section 4. I also rely upon East End Paper - 1989 (43) E.L.T. 201 (S.C.) to come to a finding that such bags to be held as essential to market the goods in the wholesale market therefore eligible as inputs. (b)   I also find that the larger Bench of ....