9911796707
TMI Blog2003 (1) TMI 568X X X X Extracts X X X X X X X X Extracts X X X X ..... per : S.S. Sekhon, Member (T)]. - Revenue has filed this appeal against the Order of the Commissioner (Appeals), Hyderabad, who vide this impugned order has observed that the expression used in or in relation to the manufacture of the final products, whether directly or indirectly and whether contained in the final product or not incorporated in Rule 57B(1) of the Rules has been used to wide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of Rule 57B(1) ibid. As could be seen from Rule 57B(1) that it allows credit of duty on certain inputs whereas Rule 57B(2) disallows credit of duty on certain inputs. The heading of Rule 57B is eligibility of credit of duty on certain inputs . All the above suggests that Rule 57B is a reproduction of erstwhile explanation to Rule 57A. Thus, the items mentioned under Rule 57B(1) do not enjoy any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... redit, the item should participate in the process of manufacture without which the end-product cannot be manufactured. are used in the maintenance of machinery and pipelines, the decision of Commissioner (Appeals) vide Order-in-Appeal No. 266/2000 (V) C.E., dated 21-12-2000 in allowing Modvat credit on paints is not correct in law and not sustainable. 3. We have heard both sides and the subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls Ltd (supra) is a reference application and its rejection. He submitted that when Rule 57B specifically includes paints and when use of such paint is essential for the maintenance of the machinery and pipelines and is the production of the goods that cannot be effected. Then they should be considered to be used in or in relation to the manufacture of the final products . The Counsel referred to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... final product pesticide and use of paints on machinery and pipelines manufacture thereof is not based on any technical evidence. It is not an opinion of the adjudicator arrived without any valid reason. It is therefore not acceptable. If the intention was to restrict the inputs under Rule 57A, then that Rule would not have used the words used in or in relation to manufacture . Articles which a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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