Modvat credit on Molywire used in electric bulb manufacture was held admissible, and denial of credit was set aside.

Modvat credit was admissible on Molywire used as an input in the manufacture of electric bulbs and tubes under Rule 57A of the Central Excise Rules. The Tribunal noted that the issue had already been decided in the assessee's own case and followed those binding and persuasive decisions, holding that the denial of credit was not sustainable. The credit denial was therefore set aside in favour of the assessee.

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Issues: (i) Whether Modvat credit was admissible on Molywire used in the manufacture of electric bulbs/tubes under Rule 57A of the Central Excise Rules.

Analysis: The item Molywire was found to be used in the electric bulb and the issue had already been decided in the appellant's own case by the Tribunal. The earlier decision, followed by the Tribunal, held that Modvat credit was admissible on Molywire used as an input in electric bulbs, and the impugned denial was not sustainable in view of those binding and persuasive decisions.

Conclusion: Modvat credit on Molywire was held admissible and the denial of credit was set aside in favour of the assessee.

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