While allowing the second appeal filed by M/s. Hindustan Copper Ltd, the Delhi bench of the Customs, Exise and Service Tax Appellate tribunal ruled that CENVAT Credit is allowable on steel strappings used for packing the final products under the Excise law.
In the instant case, the appellant-assessee approached the CESTAT on second appeal impugning the orders of the lower authorities holding that cenvat credit is not allowable to the assessee on steel scrapers, which is used for packing materials for the final product manufactured by them.
The tribunal noticed the decision in Nilkamal Ltd. Vs. CESTAT, Chennai, in which it was held that the final products cleared along with the packing material are entitled to the benefit of credit paid on the packing materials.
Referring to the above judgment, the Tribunal pointed out that “there is no doubt in the present case that steel strappings are used for packing the final products of the appellants, in which case they would be cenvat able in view of the law declared by the Hon’ble Madras High Court.”
Read the full text of the order below.
