1997 (4) TMI 302

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..... ssue involved is whether coated abrasive paper, also known as emeri paper, is entitled to the benefit of Modvat credit. The original authority denied the Modvat credit on the ground that its function is of polishing the plywood. Therefore, it is used as a tool and hence it cannot be treated as an input under Rule 57A of the Central Excise Rules, 1944 because it is hit by the exclusion clause in Ex .....

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..... ) that it is a tool and, therefore, excluded from the exclusion clause; (2) it is not used in relation to the manufacture of the final product. Therefore, it is not an input. 3. I have carefully considered the pleas from both sides. I am of the view that the grounds taken by the appellant Commissioner are not tenable. Coated abrasive paper cannot be considered as a tool. It merely smoothens or p .....

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