TMI Blog1996 (5) TMI 216X X X X Extracts X X X X X X X X Extracts X X X X ..... nfirmed the finding to that effect, reached by the Assistant Commissioner of Central Excise, Division II, Ghaziabad. 2. Shri R.S. Pandey, learned consultant who appeared for the appellants stated that since Hessian Cloth is used by them as packaging material and as packaging materials are specifically included in the defition of inputs given in the Explanation under Rule 57A of the Central Excise Rules, 1944, Modvat credit would be admissible to them in respect of such material notwithstanding the fact that the particular Chapter in the Tariff Schedule under which the same falls is excluded in Notification No. 5/94, dated 1-3-1994. As regards the other item, Mobil Oil, the learned consultant submitted that it is used by them in lubricat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the lubricating oil is used only in relation to the plant and machinery in which their product `paper is manufactured. Such use cannot be treated as use in relation to the manufacture of final product. He, therefore, pleaded that the findings of the Commissioner (Appeals) in respect of both these items may be upheld and the appeal dismissed. 4. I have considered the arguments. There is no doubt that when the relevant Notification which lays down the scope of the modvat scheme by listing the inputs covered thereunder in a Notification and that Notification is issued in the context of Rule 57A, the appellants cannot be heard to say that packaging materials being specifically covered in the inclusive definition of `inputs in the Explanatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed consultant referred to the discussion on the scope of the term `in relation to the manufacture in the larger Bench decision reported in 1996 (82) E.L.T. 575. As stated therein, the said expression is one of considerably larger import than the term in the manufacture . Again, even the scope of the expression `in the manufacture itself has been comprehensively dealt with by the Supreme Court in J.K. Cotton Spg. Wvg. Mills Co. Ltd v. STO - AIR 1965 SC 1310. It was laid down in the said case that where any particular process is so integrally connected with the ultimate production of goods that but for that process manufacture or processing of goods would be commercially inexpedient goods required in that process would fall within the ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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