EASTERN EXPLOSIVES AND CHEMICALS LTD Vs. COLLECTOR OF C EX
LAWS(CE)-1991-2-1
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
Decided on February 05,1991

Appellant
VERSUS
Respondents

JUDGEMENT

K. Sankararaman, Member (T) - (1.) WE grant the stay and proceed to hear the appeal.
(2.) The appellants M/s. Eastern Explosives & Chemicals Ltd. are aggrieved with the Order-in-Appeal dated 30-1-1990 passed by the Collector of Central Excise (Appeals), Calcutta rejecting their appeal and upholding the Order dated 12-9-1989 of the Assistant Collector of Central Excise, Dugrapur Central Excise Divison disallowing Modvat credit on duty paid HDPE granules used in the manufacture of Blow Moulded Tubes (Lay Flat) used for packing their final product Slurry Explosives. It was held in the impugned Order-in-Appeal that the HDPE granules are raw materials for packaging material and not packaging material and that Modvat credit on packaging material is admissible only if the packaging material is brought into the manufacturer's premisses in a ready-to-use condition. Shri S.N. Sinha Mahapatra, learned Counsel for the appellants argued their case. He submitted that an identical issue had been decided by this Bench vide order No. A 619 & 620/Cal/1991 dated 25-9-1991 in Appeal Nos. E-96/91 and Appeal No. E-98/91 (Collector of Central Excise, Bhubaneswar v. I.D.L. Chemicals Ltd.) reported in 1992 (61) E.L.T. 93 (Tri.). The learned Counsel submitted that the present appellants have been promoted by the same company M/s. IDL Chemicals Ltd. and the issue before us in the present case is exactly the same one which had been decided by us in the above-mentioned appeals, holding Modvat benefit to be admissible for HDPE granules converted into Blow Moulded Tubes in which their final product Slurry Explosives are packed. The learned Counsel pleaded that the same decision be taken in the present appeal also.
(3.) SHRI M.N. Biswas, learned Senior Departmental Representative reiterated the reasoning adopted by the Collector (Appeals) in his order.;


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