1996 (6) TMI 269 - AT - Central Excise

Summary

Issues: Grant of Modvat credit for specific inputs

In this judgment, the Appellate Tribunal CEGAT, MADRAS, addressed the issue of granting Modvat credit for various inputs, including hylam sheets, aluminium clad laminates, silver halide film, aluminium slurry, and diamond paste. The representative for the appellant argued that the hylam sheets should be eligible for Modvat credit based on a previous decision by the Tribunal. The Tribunal examined the definition of excluded items under Rule 57A and concluded that hylam sheets do not fall within the excluded category as they do not bring about any change in the final product being manufactured. Therefore, the Tribunal allowed the Modvat credit for hylam sheets based on this analysis.

Regarding aluminium clad laminates, the Tribunal noted that their use is similar to hylam sheets and, therefore, the Modvat credit should be allowed for the same reasons as for hylam sheets. The Tribunal ordered accordingly, granting Modvat credit for aluminium clad laminates.

For silver halide films, the appellant argued that they are used for image transfer in circuit board manufacturing and should be eligible for Modvat credit. The Tribunal considered the technical necessity of the films in the manufacturing process and compared it to a previous decision involving release paper. Based on this analysis, the Tribunal allowed the Modvat credit for silver halide films.

The Tribunal also addressed the eligibility of Modvat credit for aluminium slurry and diamond paste, noting that their use is a technical necessity in the manufacture of printed circuit boards. Consequently, the Tribunal allowed the Modvat credit for both aluminium slurry and diamond paste.

In conclusion, the Tribunal disposed of the appeal by allowing the Modvat credit for hylam sheets, aluminium clad laminates, silver halide film, aluminium slurry, and diamond paste based on their respective technical necessity in the manufacturing processes involved.