Modvat credit for solar and button cells used in calculators upheld as admissible inputs under the excise rules.

Modvat credit on solar cells and button cells used in manufacturing calculators was held admissible because their value had been included in the assessable value of the finished calculators without objection, making them inputs for Rule 57A purposes. The Tribunal also relied on earlier authority allowing credit on battery cells fitted in quartz clocks and time pieces. On that basis, the appellate order granting credit was left undisturbed.

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Issues: Whether Modvat credit was admissible on solar cells and button cells used in the manufacture of calculators.

Analysis: The appellate authority had found that the value of the cells was included in the assessable value of the calculators and no objection was raised to that inclusion. On that basis, the cells were to be treated as inputs used in the manufacture of the calculators and credit was available under Rule 57A of the Central Excise Rules. Support was also drawn from earlier Tribunal authority allowing credit on battery cells fitted in quartz clocks and time pieces.

Conclusion: Modvat credit on the solar cells and button cells was admissible, and no interference with the appellate order was warranted.

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