TMI Blog1997 (5) TMI 277X X X X Extracts X X X X X X X X Extracts X X X X ..... odvat credit in respect of silicon coil, tungsten coil and kiln wrap before their jurisdictional Central Excise Assistant Collector on the ground that the same are used in or in relation to the manufacture of their final product, that is, picture tubes. Modvat benefit was denied by the Assistant Collector on the ground that the items in question cannot be considered as inputs. On appeal against the above order of the Assistant Collector, first appellate authority allowed the respondent s appeal. Revenue has filed the instant appeal against the above order of the Commissioner (Appeals). The respondents have filed cross-objection (No. 360 361/95-NB). 3. The short issue involved in the said appeal is as to whether the items mentioned above ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be considered as inputs. In support of kiln wrap, he submitted that the product is used only for covering the glass panels during the intermediate stage which is not related to the process of manufacture at all. He submitted that even if the glass panels are not covered by the wrap during the intermediate handling process, the same are still capable of further use in the manufacture of the final product and the emergence of the final product does not depend on coverage or non-coverage of the glass panels. He further submitted that a similar question arose before the Tribunal in the case of Collector of Central Excise v. Steel Authority of India [1989 (43) E.L.T. 598] and it was held that the interleaving kraft paper used for prevent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. 1993 (64) E.L.T. 51 - CCE v. Straw Products Limited. 2. 1997 (91) E.L.T. 34 (S.C.) = 1965 STC 563 - Re : J.K. Cotton and Spinning Mills. 3. 1989 (43) E.L.T. 201 - Eastend Paper Industries Limited 4. 1990 (56) E.L.T. 456 - CCE v. Rama Krishna Steel Industries. 6. I have considered the submissions of both the sides. As regards, the silicon oil, the same is used for creating vacuum in the close shells during the course of manufacture of picture tube. The said oil is used in the diffusion pump and creates vacuum. The oil is required to be replaced and refilled after about 20-30 days working of the pump in question. I find that the Collector (Appeals) interpretation on the point of Explanation to Rule 57A is legal and proper inasmuc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se, the same cannot be considered being covered by the exclusion clause. The ratio of Larger Bench in the course of Union Carbide India Limited also applies tungsten coil in question. While following the same, I hold the tungsten coil to be an input and reject the Department s appeal on this issue. 8. As regards, the Kiln wrap used for covering the glass panels during their handling and interfloor transportation for their protection from dust and scratches, I find that a similar issue arose before the Tribunal in the case of CCE v. SAIL reported in 1989 (43) E.L.T. 598 mentioned supra. However, subsequently the said point was referred to the High Court by the same Bench. While taking into consideration the West Regional Bench decision in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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