Input used in relation to manufacture includes essential cleaning material for production machinery, making Modvat credit admissible.

Triethylene Glycol used to clean filters in the manufacturing plant was treated as an input used in relation to manufacture because the filters formed part of the production machinery and periodic cleaning was essential for uninterrupted output. The broader interpretation of "used in relation to the manufacture" under Rule 57A was preferred, and a contrary two-member view was regarded as not addressing the decisive question. On that basis, the material qualified as an eligible input and Modvat credit was admissible.

---

---

Issues: Whether Triethylene Glycol used for cleaning filters in the manufacturing plant qualifies as an input used in or in relation to the manufacture of the final product so as to entitle the assessee to Modvat credit under Rule 57A of the Central Excise Rules, 1944.

Analysis: The use of Triethylene Glycol for cleaning the filters was found to be integrally connected with the manufacturing process because the filters formed part of the machinery used for producing the final product and periodic cleaning was essential for uninterrupted manufacture. The broader expression "used in relation to the manufacture" was applied, and the reasoning in the larger-bench line of authority was preferred. The contrary two-member bench view was treated as not having addressed the decisive question whether the material was used in relation to manufacture. The earlier order in the assessee's own case, following the same legal approach, was relied upon as supporting authority.

Conclusion: Triethylene Glycol used for cleaning filters was held to be an eligible input, and Modvat credit was admissible to the assessee.

Ratio Decidendi: A material used for an essential cleaning operation that is indispensable to the manufacturing process is an input used "in relation to the manufacture" within Rule 57A and qualifies for Modvat credit.

---