Anil Polyethykne Indus. Pvt. Ltd. Vs. Commr. of Cus. and C. Ex. - Court Judgment

Excerpt:

.....much as the sub-heading was shown correctly.since the declaration included all colours, a specific colour was shown in the gate pass did not put the product out of the range of coverage of the description in the declaration. the precedent number might signify the code of the supplier and is entirely immaterial.3. the second ground of which the denial was made was that the pigment was used in the manufacture of bags for which declaration was later filed and the subject goods were received before filing the declaration. this ground is also not correct in as much as the pigments are first used in the manufacture of master batches which master batches are later used for production of bags. on the date of inputs were brought in, the declaration dated 27-12-91 was sufficient to give them the status of modvatable inputs. therefore, there was no purpose of bringing in the latter declaration, holding it as invalid and denying the credit.

Judgment:

1. Vide declaration dated 27-12-91, the appellants declared one of the inputs as ''Organic Pigment/Colour" falling under sub-heading 3204.19 and showed "Master Batches" as final products.

2. The description on GP1 dated 24-5-1993 was "4203005 - permanent yellow Ch. H. No. 3204.19". This was made the point of denial of credit at both the original and the first appellate level. I find that this was unwarranted in as much as the sub-heading was shown correctly.

Since the declaration included all colours, a specific colour was shown in the gate pass did not put the product out of the range of coverage of the description in the declaration. The precedent number might signify the code of the supplier and is entirely immaterial.

3. The second ground of which the denial was made was that the pigment was used in the manufacture of bags for which declaration was later filed and the subject goods were received before filing the declaration. This ground is also not correct in as much as the pigments are first used in the manufacture of master batches which master batches are later used for production of bags. On the date of inputs were brought in, the declaration dated 27-12-91 was sufficient to give them the status of modvatable inputs. Therefore, there was no purpose of bringing in the latter declaration, holding it as invalid and denying the credit.