Collector of Central Excise Vs. Tata Tea Ltd.

1. this revenue appeal is directed against order dated 29-7-1988. the issue relates to admissibility or otherwise of credit availed on aluminium foils used as packaging material for tea.2. arguing for the revenue, ld. dr submits that aluminium foils are used in the manufacture of tea chest which is exempted under notification no. 48/87, dated 1-3-1987 and therefore, credit is not admissible.3. arguing for the respondent ld. advocate submits that aluminium foils used in the manufacture of tea chest in the factory and instead of putting tea first in the aluminium foils which are subsequently put in the tea chest they lines, the tea chests themselves with aluminium foils and thereafter pack such tea in such tea chest. this make it clear that aluminium foil is used in or in relation to manufacture of tea.4. we have heard both sides. once aluminium foils are used as a lining material in the tea chest, we do not understand why such aluminium foils cannot be treated as inputs in or in relation to manufacture of tea. in fact it is contended before us by the ld. advocate that collector himself extended the benefit to other tea estates in his jurisdiction. since we hold that use of aluminium lining in the manner described above is use in relation to manufacture of package tea, we do not see any infirmity in the order of collector (appeals) and, accordingly, the revenue appeal is rejected.