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TMI Blog2001 (7) TMI 568X X X X Extracts X X X X X X X X Extracts X X X X ..... t of Inter Leaving Kraft paper used in the manufacture of stainless steel sheets under Rule 57A of the Central Excise Rules. The Tribunal after due consideration of the submissions made by both the sides allowed the appeal of the Revenue by holding in para 4 of the Final Order No. 153/89 dated 30-3-1989 as follows :- We have carefully considered the submissions made by the learned SDR and the papers filed by the respondents. The question is whether the interleaving kraft paper can be considered as an input for purpose of MODVAT credit in terms of Rule 57A of the Central Excise Rules, 1944. It is stated that the interleaving kraft paper is used during the coiling and uncoiling process of the stainless steel sheets as a protection against ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entral Excise Rules, 1944? and (ii) whether the Customs, Excise and Gold (Control) Appellate Tribunal had any material to take the view that interleaving kraft paper used in different stages of manufacture of stainless steel strips/sheets to avoid rubbing scratches to the material during rolling operation of the in process goods can be considered to be in the nature of equipment of appliance in the absence of any plea even beyond of actual proof to that effect by the respondents at any stage of the proceedings Arising of Appeal No. E/42/88(MAS) 249/87 (CBE) dated 26-10-1987 on the file of the Customs, Excise and Gold (Control) Appellate Tribunal South Regional Bench at Madras? for consideration in Reference Case. No. 7/99 and decide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an explanation which reads as under : For the purpose of this rules inputs includes : (a) inputs which are manufactured and used within the factory of production in or, in relation to, the manufacture of final products, and (b) paints and packaging materials, but does not include : (i) Machines, machinery, plant, equipment, apparatus, tools or appliances used for producing or processing or any goods or bringing about any change in any substance or in relation to the manufacture of the final products : (ii) Packaging materials in respect of which any exemption to the extent of the duty of excise payable on the value of the packaging materials is being availed of for packaging any final products : (iii) Packagi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Central Excise is that this paper is used in the process of manufacture. In the course of his order, the Collector has stated that every coiling operation in this process flows through various processing units with interleaving paper and that the interleaving paper is taken out in the next processing during uncoiling and further that the coils undergo generally six to seven uncoiling and recoiling operations depending on the grade and gauge of stainless steel products and the process cycle it has undergone. Every process involves one coiling and one recoiling. 3. It is, therefore, evident that the kraft paper which the assessee had purchased by paying duty has been used by it in relation to the manufacture of the final product and tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the negative. 4. The High Court has sent back the file now directing the Tribunal to pass the final order in terms of Section 35K read with Section 35C of the Act. In terms of the above answer given by the Hon ble High Court to the question raised, the Tribunal is passing this final order holding that the input Interleaving Kraft paper used in the process of cold rolling and manufacture of stainless strips can be considered to be used in terms of provisions of Rule 57A of Central Excise Rules and the assessee is entitled to the benefit with consequential relief thereof. While, the second question referred to the High Court has been answered in the negative, hence no order is required to be given on this aspect of the matter. Thus th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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