1997 (6) TMI 135 - AT - Central Excise

Summary

The judgment involves the issue of whether filter aid material called Dicamol qualifies as an eligible input for Modvat credit under Rule 57A. The appellants manufacture medicines and were availing of Modvat credit. The Department argued that the filter aid does not form part of the final product and thus, no Modvat credit should be extended. The Commissioner's decision was overturned based on a Larger Bench decision, which stated that goods used in any activity related to manufacturing can qualify as raw materials, even if they do not directly enter the final product. The appeals were allowed, setting aside the previous order.