Modvat credit admissibility extended to lubricants, resin, Nalcool and sealing tape under Rule 57Q

Modvat credit was treated as admissible on lubricants, unsaturated polyester resin, Nalcool and polytetra fluoro ethylene tape. The first three items were covered by earlier Tribunal rulings allowing credit on similar facts, and the same reasoning was extended by analogy to the tape used to prevent leakage in pipes. Credit was therefore allowed under Rule 57Q of the Central Excise Rules, 1944, on all disputed items.

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Issues: Whether Modvat credit was admissible on lubricants, unsaturated polyester resin, Nalcool and polytetra fluro ethylene tape.

Analysis: The first three items were held to be covered by earlier Tribunal decisions allowing credit on similar facts. As to polytetra fluro ethylene tape, the same reasoning was applied by analogy to the use of M-Seal for preventing leakage of pipes, and credit was held admissible under Rule 57Q of the Central Excise Rules, 1944.

Conclusion: Modvat credit was held admissible on all the items in dispute, and the appeal succeeded in full.

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