9911796707
TMI Blog1997 (10) TMI 263X X X X Extracts X X X X X X X X Extracts X X X X ..... go in the stream line of production of final product and the functional use of which is lubrication of machines only. By the subject order, the Tribunal held that the items in question were eligible for the benefit of Modvat credit and allowed the appeal upholding the claim of the appellants who are respondents in this Reference matter. Objection was that these oils were not used in relation to the manufacture of their final product, copper strips/foils, and aluminium articles and that such use was for protecting the products from developing cracks as also to render the product smooth besides rendering the machines installed in the factory operational. The stand of the lower authorities was that these oils are not used in the manufacture ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aw has arisen out of the Tribunal s order. 4. I have considered the submissions. I have perused the record. The main thrust in the application is that the oils in question do not go into the stream line of production but are used for lubricating purposes only and not in relation to the manufacture of the final product. I find that the preset order of the Tribunal followed an earlier order of this Bench as well as that of the Larger Bench. The former was in Pragati Paper Mills (P) Ltd. v. Collector of Central Excise, Meerut reported in 1996 (88) E.L.T. 137 wherein it was held that lubricating oil is an eligible input for the purpose of Rule 57A for availing Modvat credit. That decision also followed the same Larger Bench decision in Shri R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y and not used in or in relation to the manufacture of final product. It is the contention of the respondent that the use of the oils is not only for lubrication of the machines but on the materials also in the manufacturing process. Such use is definitely in the manufacture of the products. The use for lubricating the machines also is in relation to the manufacturing process only and without such use manufacture will not be commercially expedient. The test laid down by the Supreme Court in the J.K. Spg. Wvg. Mills case is satisfied. The items are used in a manner satisfying the requirement of Rule 57A and they do not fall under the excluded category as per the Explanation therein. The Tribunal decision sought to be referred to the High ..... X X X X Extracts X X X X X X X X Extracts X X X X
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