Modvat credit for rear view mirrors on scooters upheld where the mirrors were treated as inputs related to the final product.

Rear view mirrors supplied with two-wheeler scooters were treated as modvatable inputs because they were used in relation to the final product and formed part of the goods for Modvat purposes. The Tribunal followed its earlier decision in the same assessee's case and held that the absence of a contemporaneous legal requirement for compulsory fitment was not decisive against credit. On that basis, Modvat credit was available in respect of the mirrors.

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Issues: Whether rear view mirrors supplied with two-wheeler scooters were modvatable inputs eligible for credit.

Analysis: The Tribunal followed its earlier decision in the same assessee's case and treated rear view mirrors as inputs used in relation to the final product. The absence of a contemporaneous legal requirement for compulsory fitment was held not to be decisive for the question whether the article formed part of the goods for Modvat purposes.

Conclusion: Rear view mirrors were held to be modvatable inputs and credit was available to the assessee.

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