Modvat on titanium coated mild steel electrodes, thinners, paper and flushing chemicals, cutting oils, Nitrogen etc. - Central Excise - B21/ /87-TRU

Modvat on titanium coated mild steel electrodes, thinners, paper and flushing chemicals, cutting oils, Nitrogen etc. F. No. B21/ /87-TRU Dated 1-9-1987 Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Central Excise - Admissibility of Modvat benefit in respect of certain inputs - Regarding I am directed to refer to your letter No. IV/16/215/87-CX.1, dated 8th July, 1987 on the above subject and to say that stated in your letter have been examined by the Board raised therein are being clarified as under : - (1) Titanium coated mild steel electrodes In the specific case cited, cathodes and anodes, used in electrolysis process are stated to be not consumables but more in the nature of fixed plant items. The that they will not qualify for Modvat credit. (2) Thinners In the case of admixing of thinners as dilutents spray-painting of component parts of automobiles, such as would not qualify for Modvat benefit. (3) Paper Craft paper, which is used as inter-leaving to avoid scratching of the surfaces of steel sheets, would not qualify as an input for the Modvat credit. (4) Flushing chemicals, Cutting Oils, Nitrogen As regards usage of flushing chemicals, cutting oils and compressed nitrogen as inputs, in the manner indicated in your letter, these inputs would appear to be ineligible for Modvat benefit.