9911796707
TMI Blog1992 (1) TMI 215X X X X Extracts X X X X X X X X Extracts X X X X ..... ilicone Spray' used in the appellants' factory for cooling the mould surface to prevent the moulded parts sticking to the mould surface during injection moulding of thermo-plastic components, would be eligible for MODVAT credit under Rule 57A. The lower authorities have held that Silicone Spray being essentially a lubricant used to facilitate the mould release was in the nature of equipments or appliances which are excluded from the definition of 'inputs' for the purpose of MODVAT credit in terms of the 'Explanation' to Rule 57A of the Central Excise Rules. 2. On behalf of the appellants the learned Consultant Shri Y.N. Chopra stated that 'Silicone Spray' is an input for the manufacture of plastic moulded components since moulds mounted on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o Rule 57A which reads as under : "Explanation - For the purpose of this rule "input" includes - (a) inputs which are manufactured and used within the factory of production, in or in relation to, the manufacture of final product, and (b) ...... but does not include - (i) machines, machinery plant, equipment, apparatus, tools or appliances used for producing or processing of any goods or for bringing about any change in any substance in or in relation to the manufacture of the final product. (ii) ... (iii) ... (iv) ... (v) ... 5. It is seen that the lower authorities have held that 'Silicone Spray' being an item for facilitating the release of the mould is functionally akin to an appliance used for the production or processing of go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... identally we also observe that the benefit was given to these films under Rule 56A, where requirements are more restricted than the MODVAT scheme and that has not been challenged by the Department, when the Collector (Appeals) held that they are inputs for producing lamination. We are, therefore, unable to appreciate the challenge now made with regard to the eligibility of the same inputs under MODVAT scheme. We make this observation, in the passing, and would like to make it clear that even viewing strictly the eligibility under Rule 57A, we are satisfied that the inputs, namely BOPP film used in the manufacture of laminates is eligible for MODVAT credit. We, therefore, dismiss the appeal of the department and sustain the order of the Coll ..... X X X X Extracts X X X X X X X X Extracts X X X X
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