2002 (3) TMI 776

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....DR, for the Respondent. [Order]. -  This appeal has been filed by the assessee, aggrieved by the order of the Commissioner (Appeals) denying them Modvat credit of Rs. 1,37,760/- on gunny bags and Modvat credits of Rs. 1,999/- and Rs. 4,868/- on parts of turbine and imposing a penalty of Rs. 10,000/-. 2. Examined the records and heard both sides. 3. The credit of Rs. 1,37....

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...." under Rule 57Q as this Rule stood at the material time and further that the question of Modvatability of the goods is fully covered in favour of the appellants by the Tribunal's judgment in the case of Jawahar Mills Ltd. [1999 (108) E.L.T. 47]. The counsel for the appellants has reiterated these grounds. The DR, Sh. S.C. Pushkarna submits that, under Notification No. 5/94-C.E. (N.T.) (as amended....

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....ng of that term under the explanation to Rule 57A. There is no dispute of the fact that the gunny bags in question were packaging material used in respect of the appellants' final product sugar. The lower appellate authority has, however, denied Modvat credit on gunny bags on the ground that the item (falling under Chapter 63) was not one specified as input under Notification No. 5/94-C.E. (N.T.) ....

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....y of the Rule. The body of the Rule operates against the present assessee inasmuch as gunny bags are concerned. I, therefore, hold that the lower appellate authority has rightly denied Modvat credit to the appellants in respect of gunny bags. 5. The appellants themselves have pleaded in the memorandum of appeal that the goods on which Modvat credits of Rs. 1,999/- and Rs. 4,868/- were deni....