TMI Blog2000 (9) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... lastic films. As per the appellants in the process of Metallising the polyester films, refractory ceramic evaporation boats are used for evaporating the aluminium wire and also Boron Nitrate suspension is used as coating material over the boat section. The process of vacuum metallising, as explained by the appellants, is undertaken in the vacuum chamber of the metalliser where the plastic film is coated with an even or uniform layer of aluminium. The ceramic evaporation boats are used for the reason that they are having the property of resisting the temperature upto 1500 degree C under vacuum. The plastic rolls are loaded from one side of the vacuum chamber and the aluminium wire is continuously fed in from the other side to the evaporation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arger Bench of the Tribunal in the case of Union Carbide India Ltd. (supra) held that parts of machine are entitled for the benefit of credit under Rule 57A of the Rules. ld. Counsel, further, submits that the Larger Bench decision in the case of Union Carbide India v. C.C.E. was upheld by the Hon'ble Patna High Court in the case of C.C.E. v. TELCO (supra). The ld. Counsel also relies upon the decisions of the Tribunal in the case of Kalyani Steels Ltd. v. C.C.E., Pune reported in 1998 (99) E.L.T. 620 and in the case of Madhya Pradesh Iron Steel Co. v C.C.E. reported in 1998 (29) RLT 696 and held that refractories and refractory material was also held to be inputs as input. 5.The Revenue relied upon the decisions of the Tribunal in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ester film as explained by the appellants. As the Boron Nitrate suspension is used as quoting material over boats so that the vapourised aluminium does not stick over the boats and got consumed during this process. Hence Boron Nitrate suspension clearly participates in the manufacturing process and will be eligible as an input used in the manufacture of final product. 8.In respect of ceramic evaporation boats, the contention of the appellants is that these boats are used in the manufacture of films as they are having property of resisting the high temperature under vacuum and aluminium wire is continuously fed to the boat where it is vapourised and evaporated. The appellants are not considering the ceramic evaporation boat as part of vacu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of metallised polyester films. In view of the above discussion, we uphold the view taken by the Tribunal in the case of Madhya Pradesh Polypropylene Ltd. v. C.C.E. reported in 1996 (88) E.LT. 730 and in the case of Jalpac India Limited v. C.C.E. reported in 1997 (96) E.L.T. 554 and hold that contrary view taken in respect of evaporation boats is not a good law. In view of the above discussion, the question referred to the Larger Bench is answered in the following terms : "The Modvat credit of duty paid on Boron Nitrate suspension utilised in the manufacture of metallised polyester films is admissible under rule 57A of the Central Excise Rules and the Modvat credit of duty paid on ceramic evaporation boats used in the manufacture of meta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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