TaxTMI 
TaxTMI 
2000 (6) TMI 43
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....eived the bottles in plastic crates from M/s Alembic, re-packed them in corrugated cartons and sent them to M/s Amritanjan by endorsing the gate passes received from M/s Alembic. In the case of M/s Charminar Bottling Co., the assessee manufactured Aerated Waters. The glass bottles for the packing of the aerated waters were manufactured and cleared on payment of Central Excise duty by M/s J.G. Glass Limited, Pimpri, Pune to M/s Arizona Printers and Packers (P) Ltd. who after printing, decorating and repacking, sent them to M/s Charminar by endorsing the gate passes originally issued by M/s J.G. Glass Ltd. Similarly, M/s Prabha Beverages (P) Ltd. manufactured Aerated Waters. They received duty paid glass bottles manufactured by M/s Ballarpur ....
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....and Customs, in this behalf evidencing the payment of duty on such inputs. The Board in terms of the powers conferred under Rule 57G, has issued a Circular which in turn has been issued as Trade Notices by the various Central Excise Collectorates. Central Excise Collector, Calcutta-II Trade Notice No. 87/89 dated 5-5-1989 [1989 (41) E.L.T. (T34)] in this respect is re-produced below. "Trade has expressed difficulty in obtaining Modvat Credit on the endorsed gate passes both in respect of the past supplies received as well as the entire goods transferred to a third party. The matter has been examined. It has been decided that original gate pass which has been endorsed once can be further endorsed once more provided that entire goods cover....
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.... 351/86 can be extended so as to cover the job work activities under Notification 214/86. 5. It would be seen from the above that a Gate Pass endorsed twice over has been prescribed by the Board as a valid document for the purpose of availing the Modvat credit provided the entire goods covered by it are transferred to the third party in original packing. The CBEC by permitting the availing of credit on the endorsed gate passes has relaxed the rigors of Rule 57G. In the matter of glass bottles, their Lordships of the Supreme Court in Union of India v. J.G. Glass Industries Ltd. - 1998 (97) E.L.T. 5 (S.C.) have held that printing/decoration carried out on the glass bottles does not amount to manufacture and no duty would be payable again i....
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.... respective GP Is. Therefore, there is no ground to deny them the Modvat credit. 6. The same view is endorsed in the Tribunal decision in Delhi Bottling Co. Pvt. Ltd. v. Collector of Central Excise, New Delhi - 1995 (78) E.L.T. 505 (Tribunal) and in Haryana Drinks Pvt. Ltd v. Collector of Central Excise, Delhi - 1996 (85) E.L.T. 189 (Tribunal). In the former case, the glass bottles were manufactured by M/s J.G. Glass Ltd. and sent to M/s Arizona Printers who did printing on the bottles and supplied them to M/s Delhi Bottling Co. - the aerated water manufacturers on endorsed gate passes. M/s J.G. Glass Ltd. and M/s Arizona Printers are the same two parties concerned in the manufacture and printing of the glass bottles respectively in the ....