2015 (10) TMI 2265

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.... show cause notice, such empty glass bottles were bearing assessees own brand name as well as bottles bearing the brand name belonging to others. It was also noted that the assessee has sold the empty bottles due to change in packing sizes from 250 ml to 300 ml and change in the brand name from 'Bisleri Club Soda' to 'Parle Bailley Soda' and also on account of the bottles bearing the brand name of other companies received into the assessee's factory. As per the provisions of the then Rule 57F of the Central Excise Rules, the inputs on which credit has been taken could be used in relation to the manufacture of final product or may be removed after intimating to the Assistant Commissioner of Central Excise having jurisdiction over the factor....

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....n of paying or reversing any credit on such bottles. Even in respect of their own bottles, these have been put to use and it is only after using the bottles and when they became old and unusable, the same were sold. The learned counsel further emphasized that the Rule stipulates as such which would imply that the goods are without use. However, the bottles sold by them were used bottles and hence no cenvat credit is required to be reversed. The learned counsel also submitted copy of the order-in-original No. 8/Commr.(AH)/05 dated 27.1.2005 passed by the Commissioner on a similar issue. The learned counsel also submitted that similar issue has come up in number of cases particularly with reference to capital goods and it has been the consist....

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....ther submitted that the Commissioner (Appeals) in his order has taken the view that the relevant glass bottles were not unusable but were still capable of use and cannot be treated as a scrap. He submitted that large number of glass bottles were sold due to the change in their brand name and also the size of the bottles. 4. We have considered the submissions made by both the sides. We find that the appellant from the beginning is claiming that the bottles sold were used glass bottles and these were sold on account of change in the brand name from Bisleri Club Soda to Parle Bailley Soda. It is also their contention that they have sold their bottles not only on their brand name but other brand name. Further, all the bottles which were sold b....