2017 (7) TMI 490

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.... Per: Ramesh Nair 1. The issue involved relates to total nine show-cause notices. In one show-cause notice No.C.EX/R-02/SPL/Modat/SCN/98/1139 dated 04/09/1998, the allegation is that the Cenvat Credit in respect of catch covers, which is a packing material is not admissible for the reason that the catch covers are not the essential primary or secondary packing material used for the manufactur....

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....s not under dispute that catch cover is used for packing of the final products, i.e. physician samples, which was cleared on payment of duty. As regards the issue relates to the subsequent eight show-cause notice, he submits that the credit was denied on the ground that cost of catch cover was not included in the value of the finished goods, i.e. physician samples. He submits that there is no cond....

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.... in the impugned order. He submits that the objectives of the Modvat/Cenvat Credit is to avoid the cascading effect. If the cost of the packing material is not included in the final products, the purpose of the Modvat Credit is defeated. Therefore, it is necessary to include the cost of packing material in the value of the final products for allowing Modvat/Cenvat credit. 4. I have carefully co....

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.... As regards the denial of Cenvat Credit for the period 2001-2008, I find that the reason for denial of credit is that the cost of the catch cover is not included in the value of the final products, i.e. physician samples. On careful reading of the Cenvat Credit Rules, I find that there is no condition for allowing the credit that cost of input or packing material should be included in the value of....