1997 (6) TMI 228

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..... puted the classification of the said item under Chapter Heading 39.21. By the adjudication order the said issue was resolved in favour of the present appellants and against the Department. The point at issue between the Department and the appellant in this Appeal is in relation to the claim for Modvat credit on 'industrial tapes' used in the manufacture of the PU foams. The appellants have stated that 'industrial tape' is put at the edges of PU foam sheets to hold the edges together so that the sheet does not bend. It also helps to retain the original shape of the article. Its use is to prevent deformation of the shape of the sheet. Use of industrial tape also increased the life of the article. By order in original the Asstt. Collector had .....

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..... ot being a part of the input for manufacture of their product. There could therefore be not justification for denying Modvat credit on the tape used by them in the manufacture of PU foam. He relied on a number of decisions of this Tribunal in support of his contention. The following were the cases cited by him : 1. C.C.E. v. East End Paper Industries [1989 (43) E.L.T. 201 (S.C.)] holding that anything that enters into or forms part of the manufacturing process or is required to make the article marketable must be deemed to be the raw material or component. 2. C.C.E. v. Data System [1995 (80) E.L.T. 542] in which the Larger Bench of this Tribunal had held that the real test is whether the said accessory is used in or in relation .....

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..... e of the tape does not in any way change the character of the PU foam sheets except to add to its life by holding the edges together and a scrutiny of Chapter Note of Chapter 39 revealed that pasting of tape does not fall in the category of "further worked". 7. I have considered the submissions. It is not in dispute that the item presently in dispute is correctly classifiable under Chapter sub-heading 39.21. The dispute is only in relation to admissibililty to Modvat credit of Industrial tape pasted to PU foam manufactured by the appellants. Chapter sub-heading 39.21 covers a wide range of products made of plastics including plates, sheets, film, foil and strips of plastic. It does not distinguish between plates, sheets etc. covered o .....

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