- (1.) Being aggrieved and dissatisfied by the judgment and order dated 16th September, 1998 passed by the Customs Excise and Gold (Control) Appellate Tribunal (hereinafter referred to as the "cegat") South Zonal Bench at Madras, the Revenue has preferred this appeal. The questions which require consideration are:- (1) Whether or not the Modvat credit in respect of metal containers are required to be reversed, if the metal container or, packing material in which inputs was received is not used in or in relation to the manufacture of final product (2) Whether or not the duty is payable on the empty drums/containers in which calcium carbide is received by respondent and availed Modvat credit on the said input at the time of clearance from factory
(2.) On these aspects, the CEGAT relied upon an earlier judgment rendered in IOL v. Collector of Central Excise [1993 (68) E. L. T. 624] in which the CEGAT, West Regional bench at Mumbai negatived the contention of the Revenue that under the Modvat Rules, the assessee is required to pay duty on such drums or barrels, on pro-rata basis of Modvat credit availed of by the assessee, by holding that these drums/barrels could not be treated to be a waste arising out of processing of the inputs for which credit has been taken. Rule 57f, in terms, provides for taxing of the waste arising out of manufacturing process. The drums/barrels cannot be terms as waste arising out of manufacturing process.
(3.) In our view, the said reasoning cannot be said to be, in any way, erroneous. There is no specific rule levying duty on such drums/ barrels/containers.;