2000(06)LCX0089

IN THE CEGAT, NORTHERN BENCH, NEW DELHI

Shri S.S. Sekhon, Member (T)

PADMINI POLYMERS LTD.

Versus

COMMISSIONER OF CENTRAL EXCISE, MEERUT

Final Order No. A/2075/2000-NB, dated 8-6-2000 in Appeal No. E/105/2000-NB

Advocated By :   Shri R.K. Chawla, General Manager, for the Appellant.

Shri R.D. Negi, DR, for the Respondent.

[Order]. - The appeal is against the denial of Modvat credit on imported inputs classified on the B.E. under Heading 3924.90 and declared to be “Jewel Box with Tray”. A declaration dated 28-4-1997 was filed by the appellant, a manufacturer of COMPACT DISC AUDIO & COMPACT DISK ROM on Computer Software, declaring ‘Jewel Box with Tray’ to be a packing material used in the manufacture of the final products viz. DISK’s.

2. The lower authorities denied the claim on coming to a finding, that the articles in question caused by Heading 3924.90 which is for Table Wares, Kitchen Wares and other articles of toilet use and household use of Plastic and such items by no stretch of imagination could be considered as packaging material for Compact Disks. He further held that since no sample of the product was drawn by the Custom authorities at the time of clearance it was difficult to accept the contention of the appellants that declaration was made of classification as made by the Custom Authorities and the appellants had not contested the classification arrived at by the Custom Authorities and which was not a part in appeal.

3. The appellants have produced the EXIM Policy Input-Output Norms issued by PN. No. 381 (PN) 92-97, dated 1-10-1996 for Policy 92-97 where for Export item at S. No. 290 Compact Disk Audio/Compact Disk Rom. The raw materials permitted to be imported are given and under the words, D PACKING MATERIALS permitted for input at S. No. 52 Jewel Box with Tray is clearly mentioned. Therefore I have no hesitation to hold that Jewel Box with Tray is essential Packing Material for CD DISKS as in this case which can be imported. Therefore it is an eligible input under rule 57A. As regards its classification under 3924.90 as made in the subject BE, if the Department feels it is not correct, the course available was to approach the concerned Custom House and ask them to correct the classification and vary the duty, if applicable and only thereafter proceed under Rule 57E to vary the credit. The attempt to vary the credit by questioning the classification of the originating assessing officer by adopting the route of Rule 57T is not available to the jurisdictional officer of the Availer assessee.

I cannot uphold the denial of credit under Rule 57-I as made by lower authorities.

4. In view of my findings, I set aside the order with consequential relief and direct that the department is free to adopt the route of 57E to vary the credit if they opt to do so, they can follow it.

5. Appeals allowed as above.

Equivalent 2001 (138) ELT 634 (Tri. - Del.)