2003 (11) TMI 265

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....per tube used by a texturiser, to wind the yarn when duty on yarn is paid on tariff value fixed under Section 3(2) of the Central Excise Act, 1944, on the grounds - (i)      Cost of paper tubes not included in the value of final product. Tariff value does not include the value of inputs. Therefore, credit on 'Antistatic Oil' and 'Paper Tube' is not eligible. (ii)&nbs....

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....A the same reads as under - "Explanation :- For the purpose of this rule, "inputs" include - (a) x x x x (b) x and packaging materials. But does not include - (i)       x x x (ii)      packaging material in respect of which any exemption to the extent of duty of excise payable on the value of the packaging material is being a....

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....r allowed as deductions or not included. The ground taken is therefore not substantiated. The Clause (iii) is not applicable on facts and is to be rejected. (c)     Once the Commissioner of Central Excise (Appeals) has found the impugned goods to be used in relation to manufacture "and the paper tube to be nothing but packing material" the inputs stand to be eligible for cre....