2008 (9) TMI 630

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....jars, stainless steel bowls etc. in which instant coffee powder packed in pouches subject to MRP based assessment was being sold. The Dy. Commissioner held that secondary packing were gift items supplied alongwith excisable goods which were not inputs eligible for Cenvat credit. He had also demanded interest on the amount of Rs. 7,51,080/- demanded as inadmissible credit. 2. The respondent receive bulk coffee powder from M/s. Hindustan Lever Limited (HLL) and repack them in retail packets. During 6/02 to 3/03 CPL sold instant coffee powder in containers such as bowls, plastic jars, glass tumblers etc. The instant coffee powder received in bulk form is first packed in plain pouches which are filled in plastic packets, plastic jars, ste....

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....secondary, were covered by the definition of inputs in the Cenvat Credit Rules, 2002. Therefore, the assessee was eligible for the Cenvat credit as decided in the impugned order. He also relies on the decision of the Tribunal in Eveready Industries India Ltd. v. CCE, Hyderabad - 2002 (142) E.L.T. 432 (Tri.-Bang.) in support of the respondent's claim. 5. I have considered the case records and the rival submissions made by both sides. The dispute relates to admissibility of CENVAT credit on packing material used by CPL to pack and sell instant coffee powder in plastic pouches. I find that the definition of 'inputs' contained in Rule 2(g) of CCR, 2002 reads as follows :- "Rule 2(g) : "input" means all goods, except high speed diesel oil....

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.... any, from such retail sale price as the Central Government may allow by notification in the Official Gazette. (3) The Central Government may, for the purpose of allowing any abatement under sub-section (2), take into account the amount of duty of excise, sales tax and other taxes, if any, payable on such goods. (4) [If any manufacturer removes from the place of manufacture any excisable goods specified under sub-section (1) without declaring the retail sale price of such goods on the packages, or declares a retail sale price which does not constitute the sole consideration for such sale, or tampers with, obliterates or alters any such declaration made on the packages after removal, such goods shall be liable to confiscation] E....