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TMI Blog2013 (1) TMI 586X X X X Extracts X X X X X X X X Extracts X X X X ..... and Service Tax Appellate Tribunal, New Delhi (hereinafter referred to as the Tribunal) dated 25.04.2005 by which the appeal of the respondent has been allowed and the addition made by the Assistant Commissioner, Central Excise, Division - IV, Ghaziabad has been deleted. The appeal has been admitted on the following substantial question of law:- "Whether the appellate Tribunal on the facts and circumstances of the case could decide the goods used as paint on the shop floor can be inputs under Modvat Credit Rules, 2001/2002?" 3. The facts giving rise to the present appeal are as follows:- M/S Samtel Color Ltd., Chhapraula, Ghaziabad (the respondent) was manufacturer of 'colour picture tubes' which is an excisable good falling under headi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d order. The appeal was heard by Commissioner (Appeals), Customs and Central Excise, Ghaziabad who by order dated 14.11.2003 held that the reply submitted by the appellant was not sufficient. The disputed materials were the building materials which were required for construction/maintenance of the building and not for the manufacture of the final product, as such Cenvat Credit availed on it was not admissible. On these findings, the appeal was dismissed. 5. The respondent filed a second appeal before the Tribunal. The Tribunal by order dated 25.04.2005 held that the paint and other materials were used on the floor of production hall to make it dust free and fire retardant which was essential for assembling the final product. The definition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 01 defined the word 'input' as follows:- "Input" means all goods, except high speed diesel oil and motor spirit commonly known as petrol, used in or in relation to the manufacture on final products whether directly or indirectly and whether contained in final product or not and includes lubricating oils, greases, cutting oils, coolants, accessories of the final products cleared along with the final product, goods used as paint, or as packing material, or as fuel, or for generation of electricity or steam used for manufacture of final products or for any other purpose, within the factory of production" 8. The word 'manufacture' has been defined under Section 2 (f) of the Central Excise Act, 1944 as follows:- "manufacture" includes any pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. It needs little emphasis that the process of manufacture is complete only when the product is rendered marketable. Thus, manufacture is intrinsically integrated with marketability." 10. The word 'input' has to be examined with the word 'manufacture'. The respondent claims that dust free hall was essential for assembling the final product., which has been accepted by the Tribunal. From the aforesaid definition of 'manufacture' it is clear that not only the materials used in the final product but incidental and ancillary requirements for the completion of the final product are also falls within the definition of the manufacture. As such the materials used in making the dust free hall are incidental and ancillary for the completion of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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