Input credit for laminate manufacture upheld where polypropylene film was used to separate layers during the compression process.

Biaxially oriented polypropylene film used during manufacture to separate layers of industrial and decorative laminates was treated as an input for credit purposes under Rule 57A of the Central Excise Rules, 1944. The Tribunal noted that the film was used in the compression process to facilitate manufacture, and followed earlier decisions that had declined to classify the material as an appliance. On that reasoning, the view that the film qualified as an eligible input was upheld, and the challenge to that finding failed.

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Issues: Whether Biaxially Oriented Polypropylene film used to separate layers of industrial and decorative laminates during manufacture was an input under Rule 57A of the Central Excise Rules, 1944.

Analysis: The film was used in the course of manufacture to separate laminate layers during compression. The Tribunal noted that earlier decisions had considered the same type of film and had declined to treat it as an appliance. Those decisions were followed, and no reason was found to differ from the view that the film qualified as an input for credit purposes.

Conclusion: The film was held to be an input under Rule 57A of the Central Excise Rules, 1944, and the appeal challenging that finding failed.

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