2002 (3) TMI 697

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....]. - The appellants are engaged in the manufacture of paper and are availing the benefit of Modvat credit on various inputs including packaging materials in terms of provisions of Rule 57A of Central Excise Rules, 1944. The dispute in the present appeal relates to the Modvat credit availed by the appellants in respect of BOPP tapes, Hessian cloth and Wrappers. As per the facts on record that the....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....er, the inputs which did not come back to the factory and was utilised in the cutting section itself, has been denied the benefit. Accordingly, the Commissioner has disallowed the Modvat credit of Rs. 1,56,357.00 and has imposed personal penalty of Rs. 1.50 lakh upon the appellants. 3. Shri S.C. Mohanty, ld. Advocate appearing for the appellants submits that the inputs in question were admit....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....extended them the benefit in respect of inputs which was received back in their factory after cutting etc. The provisions of Rule 57F(1) and 57F(3) required them to clear the inputs after following the procedure which has admittedly not been followed by them. The use of the packaging materials at a place other than a factory cannot result in admissibility of Modvat credit to the appellants. 5.&em....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....I note that the Larger Bench of the Tribunal in the case of Balmer Lawrie & Co. Ltd. & Ors. v. Commr. of Central Excise, Kanpur & Ors. reported in 2000 (116) E.L.T. 364 (T) = RLT (LB-CEGAT) 1403 has held in paragraph 21 that ".......No doubt, the modern Courts/Tribunal seek to cut down the technicalities attendant upon a statutory procedure where these cannot be shown to be necessary to the fulfil....