9911796707
TMI Blog2003 (7) TMI 570X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri S. Bhatnagar, JDR, for the Respondent. [Order]. - The adjudicating and first appellate authorities have denied Modvat credit of countervailing duty of Rs. 80,228/- to the appellants in respect of Colour Proofing Film (Tariff sub-heading No. 3702.90), which was used in April, 1998 in connection with the manufacture of Gravure Printing Cylinders (GPC, in short). The appellants are manufact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ose in the process of manufacture of the final product to be supplied to the customer. The Colour Proofing Film on which the Modvat credit in question was taken was used by the appellants in the above manner. The show-cause notice, which proposed to disallow the credit, alleged that the Colour Proofing Film was not used in or in relation to the manufacture of the final product as the proofing was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the film was used before the start of manufacture of GPC. It has also been contended that the activity of taking proof of design by using the Colour Proofing Film was integrally connected with the ultimate manufacture of the final product and that, without such activity, it was not possible at all to manufacture the final product ordered by the customer. In this connection, reliance has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if a customer requires a multi-coloured design for printing on their packing material, they will place order with the appellants for so many GPCs as there are different colour elements in the required design. This is because proofing films of different colours cannot be used for the manufacture of one GPC. GPCs of different colour designs can be manufactured by using only different Colour Proofing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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