1996 (12) TMI 236 - AT - Central Excise

Summary

The Department appealed the Collector (Appeals) finding that the assessee could take Modvat credit on duty paid for thinners used in paint for motor vehicles. The Department argued that a circular initially disallowed credit, but a later circular allowed it. The judge ruled that credit is available for inputs used in manufacturing the finished product, as long as the input is not excluded by Rule 57A. The judge upheld the assessee's right to take credit, stating that the Board's circular cannot restrict the rules. The appeal was dismissed.