1996 (11) TMI 175

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..... Plastic Backed in rolls or strip form, Acid Degreaser-Coprolite H-83 and Cuprolite x-84, Solder Cleaning Salt Solution, Glazed Transparent Paper, Gummed or Adhesive Paper and Paper boards, are not eligible for the benefit of input duty credit under the Modvat scheme. The appellants have filed the present appeal. 2. The facts of the case are that appellants are engaged in the manufacture of printed circuit boards falling under sub-heading 8534.00. The appellants purchased a number of inputs and started availing Modvat credit of duty on the inputs after filing declaration under Rule 57G. The department alleged that 42 inputs described in the Order-in-Original where not inputs used in or in relation to the manufacture of printed circuit boar .....

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..... ment, apparatus, tools or appliances used for producing or processing of any goods for bringing about any change in any substance in or in relation to the manufacture of the final products etc. 6. The items to be considered are bakelite sheets on paper phenolic industrial laminates, aluminium clad entry foil and back up laminates - it was contended by the appellants before the lower authorities that these two items are used for the sake of getting perfect drilling saving the copper clad glass from damages and also to absorb excess heating generated at the time of drilling. Collector (Appeals) held that these sheets only serve the purpose of sheet and though after drilling these sheets become waste. They cannot be regarded as inputs and t .....

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..... st of the items excluded in the explanation to Rule 57A. We find that this items cannot be classified as one of the items in the exclusion clause. We therefore hold that Modvat credit of duty will be admissible on this input. 9. Acid Degreaser Cuprolite H-83 and Cuprolite x-84 - these items are used to remove oily substances, photoresist residue from the panel surface during electroplating. These two items are admittedly used in or in relation to the manufacture of printed circuit boards. These two items also do not find place in the list of items included in the excluded category. Therefore we hold that Modvat credit will be admissible on these items. 10. Glazed Transparent Paper, Gummed or adhesive paper or rolls - These items are use .....

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