TMI Blog1996 (7) TMI 305X X X X Extracts X X X X X X X X Extracts X X X X ..... gle issue for consideration here is whether lubricant oils and greases which are used for the maintenance of machinery qualify as inputs for the purpose of Modvat Credit in the manufacture of sugar and molasses. 2. Shri Rajesh Kumar, ld. Advocate, argued that the language of Rule 57A covers those inputs which are not only used in the manufacture but also those which are used in relation to the m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T. 444 (SC), he stated that manufacture involves a series of processes and the materials used in any of the processing, however, remote it is from the final process amount to manufacture is also a process in relation to manufacture. He stated that the explanation given in Rule did not cover the lubricants etc. He pleaded that full effect should be given to the intention of the legislature. Citing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the manufacture of the impugned goods or not. 4. I have carefully gone through the arguments advanced by both the sides. 5. Rule 57A does not define inputs. It makes certain deeming provisions by way of clauses (c) (d) of the Explanation thereto. It also lists certain exclusions. Ld. Advocate is correct in stating that lubricants and greases used for smooth operation of the machinery is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s are essential for the manufacture of a certain final product they are admissible whether they are directly used, indirectly used, and regardless of whether they are visible, invisible or lost in the process. Such a line is required to be drawn otherwise there will be no barrier prohibiting any inputs. The manufacturing area is lighted by electric lamps. Without illumination no production can tak ..... X X X X Extracts X X X X X X X X Extracts X X X X
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