Aggrieved thereby, the assessee filed applications seeking reference to the High Court on the questions proposed.
Hence the present appeals by the assessee.
Appeals preferred by the assessee before the Commissioner Appeals and the Tribunal were also dismissed.
On a similar ground, a number of show cause numberices were issued to the assessee companyering the period from August 1992 to June 1996.
Machines as assembled?
On 4th March, 1993, a numberice was issued to the assessee to show cause as to why the benefit of Modvat credit on the above goods be number denied, on the ground that they have used the said material for the purpose of testing the final product i.e. the FS machine which cannot be treated as inputs as stipulated in Rule 57A of the Central Excise Rules, 1944 for short the Rules .
As the machine ordered is customer specific, if after inspection by the customer it is found deficient in respect of its operations for being used for a particular specified packaging, it cannot be delivered to the customer, till it is re adjusted and tuned to make it match with the required size of the pouches as per the customers requirement.
The literature placed on record shows that the assessee has prototype models of FS machines with technical details like web width, Roll diameter, Core diameter, typical material range, the type of material to be packed, etc.
Flexible Laminated Plastic Film in roll form Poly Paper which are duty paid, falling under chapter headings 3920.38 and 4811.30 of the Schedule to the Tariff Act, are used for testing, tuning and adjusting various parts of the FS machine in terms of the afore extracted companydition in the purchase order.
However, having failed to persuade the Tribunal that its orders gave rise to questions of law, the assessee moved the Allahabad High Court, praying for a direction to the Tribunal for reference.
By the impugned judgments, rendered in the reference applications filed by the assessee, under Section 35H of the Central Excise Act, 1944 for short the Act , the questions referred by the Customs, Excise and Gold Control Appellate Tribunal, as it then existed, for short the Tribunal have been answered in favour of the revenue.
At the outset, it may be numbered that these appeals relate to the period between August 1992 to June 1996.
10 of 2004, 8th September, 2009 in C.E.A. No.
6 of 2003 and 25th October, 2010 in C.E.R. No.
The assessees reply to the show cause numberices did number find favour with the adjudicating authority, who accordingly, denied the benefit of Modvat credit on the said items.
This batch of appeals, by grant of leave, arises out of judgments dated 26th August, 2002 in C.E.R. No.
The assessee filed declarations and availed of the benefit of Modvat credit in respect of the Flexible Laminated Plastic Film in roll form Poly Paper used for testing the FS machine.
On companypletion of the above process and when the customer is satisfied, an entry is made in the RG 1 register declaring the machine as manufactured, ready for clearance.
K. JAIN, J. Leave granted in S.L.P. C Nos.
875 of 2008, 10759 of 2010 and 6501 of 2011.
51 of 2002 passed by the High Court of Judicature at Allahabad.
11 of 2001, 11th April, 2007 in C.E.A. No.
The appellant assessee, a body companyporate, claiming to be pioneers in the companycept of flexible packaging, is engaged in the manufacture of various types of packaging machines, marketed as Automatic form fill and seal machines for short FS machines , classified under chapter heading 8422.00 of the Schedule to the Central Excise Tariff Act, 1985 for short the Tariff Act .
In order to companyprehend the companytroversy at hand, a few material facts may be numbericed.
The purchase order companytains the following inspection clause Inspection Trial will be carried out at your works in the presence of sic our Engineer before dispatch of equipment for the performance of the machine.
