BELL PACKAGING INDIA PVT LTD Vs. STATE

JUDGEMENT

(1.) THIS application, by M/s. Bell Packaging (India) Pvt. Ltd., a resident private limited company is under Section 23C of the Central Excise Act, 1944 (for short "the Act"). The applicant is carrying on the business of designing and manufacturing plastic packaging of retail products using polyester, polypropylene, polyvinyl-chloride films and other polymers, like Diwali gift boxes and clear tubes for single flowers as presents. It proposes to set up a joint venture with a non-resident company, M/s. Bell Packaging Ltd., Luton, United Kingdom, to design and manufacture plastic packaging of retail products with polyester, polypropylene, etc. In the joint venture the foreign equity would be 97% and remaining equity of 3% will be held by the applicant. On these facts, the applicant set forth the following two questions to seek advance ruling of the Authority:

(2.) Since the machinery is imported can we start claiming the Credit of the Counter Vailing Duty and Special Additional Duty the moment we pay excise duty at the factory gate on our production? Can we accumulate credit of the CVD & SAD paid on the machinery till we complete clearances of Rs. 100 lakhs?

(3.) BY order of the Authority dated 24-8-2006 the above two questions were allowed under Section 23D(2) of the Act for pronouncement of the ruling under Sub-section (4) thereof. It would be apt to refer to the relevant portion of Notification No. 8/2003 as amended by Notification No. 8/2006. In so far as the said notification is relevant for the purpose, it reads as follows: