TMI Blog1996 (12) TMI 209X X X X Extracts X X X X X X X X Extracts X X X X ..... rt question involved in this matter is whether aluminium sheets cut to specific shape for the purpose of pressing the plywood with the help of pressing machine in manufacture of plywood in the factory is entitled to the benefit of Modvat credit under Rule 57A or not. The lower authorities have denied the benefit of Modvat credit of duty paid on such aluminium sheets on the ground that this is an a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r has been taken as an input on which the Modvat credit is permissible even though the sand paper was used for finishing/polishing plywood. In other words, it performed the function of a tool yet it was not held to be a tool because it was not known so in the market/trade as tool. He also relies on 1993 (66) E.L.T. 594 (Cal.) in the case of Singh Alloys Steel Ltd. v. Assistant Collector of Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance. Classification under Central Excise Tariff is not material. He submits that the equi-distribution of pressure applied by pressing machines on the plywood through medium of aluminium sheet gives it a character of an appliance. He, therefore, submits that Singh Alloy judgment mentioned supra will support the Revenue rather than the appellants. In this connection, he also relies on the Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... these are not covered by the excluded category of inputs. It is not disputed that the aluminium sheets under consideration are inputs in the process of manufacture of plywood. The question to be decided in this matter is whether it is covered by the exclusion clause of the explanation defining the input . The lower authorities feel that aluminium sheets are appliance for the reasons aforesaid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rted to the aluminium sheet so as to claim that the sheet has lost its character as a sheet. 4. In view of the aforesaid discussion, I am inclined to give the benefit of Modvat credit of duty paid on aluminium sheets under Rule 57A. I order accordingly. Hence this appeal is allowed. 5. Since appeal has been disposed of, Stay Petition also gets disposed of. - - TaxTMI - TMITax - Central Exc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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