1993 (9) TMI 236 - AT - Central Excise

Summary

The case involved the appellants, engaged in manufacturing telephone cables, who used oil paint for marking wooden drums containing the cables. The Department objected to modvat credit for the paint, but the Tribunal ruled in favor of the appellants, stating that the paint was essential for marking the drums, a requirement under Central Excise Rules, and thus eligible for modvat credit. The appeals were allowed, directing restoration of the disallowed modvat credit.