Printing ink as a manufacturing input qualifies for Modvat credit where printing is integral to the finished plastic film.

Printing ink used in printing plastic films was treated as an input used in relation to manufacture, because the printing process formed part of bringing the final product into existence rather than a post-manufacturing step. The printed text remained on the finished product, the ink cost was included in the price charged, and the objection that printing occurred after manufacture was rejected as unrealistic. On that basis, the ink fell within Rule 57A read with the inclusive definition of manufacture in Section 2(f), and Modvat credit was admissible.

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Issues: Whether printing ink used in printing plastic films is an eligible input for Modvat credit under the Central Excise Rules.

Analysis: The final product was held to be printed plastic films, and the printing process was treated as part of the manufacturing activity rather than a post-manufacturing step. Printing ink was used to complete the manufacture, its cost formed part of the price charged, and the printed text remained present on the final product. On that basis, the ink was regarded as an input used in relation to manufacture within the scope of Rule 57A, read with the inclusive definition of manufacture under Section 2(f). The objection that printing was undertaken after manufacture was rejected as unrealistic.

Conclusion: Printing ink was held to be an eligible input and Modvat credit was admissible in favour of the assessee.

Ratio Decidendi: Where printing is an integral part of bringing the final product into existence, the material used for such printing is an input used in manufacture and qualifies for Modvat benefit.

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