Modvat credit eligibility for printing and lamination inputs used in biscuit packing material upheld under input rules.

Printing ink, poly granules, H.R. medias, ethylene vinyl acetate co-polymer, ethyl acetate, butyl acetate and paraffin wax used in printing and lamination of biscuit packing material were treated as eligible inputs for Modvat credit under Rule 57A. The Tribunal applied earlier rulings that printing ink used on packing material, and M.G. poster paper with printing ink in the manufacture of waxed paper, fall within the input concept for Modvat purposes. On that reasoning, the items used in the packing-material manufacturing chain were held eligible for credit, and the assessee's claim succeeded.

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Issues: Whether printing ink, poly granules, H.R. medias, ethylene vinyl acetate co-polymer, ethyle acetate, butyl acetate and paraffin wax used in the printing and lamination of biscuit packing material were eligible for Modvat credit under Rule 57A of the Central Excise Rules.

Analysis: The items in dispute were used in the process of preparing printed and laminated packing material for biscuits. The Tribunal relied on earlier decisions holding that printing ink used for printing on packing material, and M.G. poster paper and printing ink used in the manufacture of printing waxed paper, qualify as inputs for Modvat purposes. On that basis, the goods used in the present manufacturing chain were treated as falling within the scope of eligible inputs under Rule 57A.

Conclusion: The disputed items were held eligible for Modvat credit, and the assessee's claim succeeded.

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