Modvat credit on disposable syringes and needles denied where prior coordinate-bench ruling held they were not manufacturing inputs.

Bought-out disposable syringes and needles supplied with injections were held not to qualify as inputs for Modvat credit, because they were not used in or in relation to manufacture of the final product. A prior two-Member decision on the same dispute was treated as binding, and a later contrary single-Member view was regarded as per incuriam and incapable of prevailing. On that basis, denial of Modvat credit and the related demand were sustained, and the assessee's challenge failed.

---

---

Issues: Whether disposable syringes and needles supplied with injections manufactured by the appellants were eligible inputs for Modvat credit.

Analysis: The appellants had taken Modvat credit on bought-out disposable syringes and needles used along with their injections. A prior decision in the same dispute had already held that syringes and needles were not inputs in or in relation to the manufacture of the final product. The Tribunal found that a later single-Member decision taking a contrary view could not prevail over the earlier two-Member decision on the very same issue and appellant, and treated the later view as per incuriam.

Conclusion: Modvat credit on disposable syringes and needles was not admissible, and the issue was decided against the assessee.

Final Conclusion: The demand and denial of Modvat credit were sustained, and the appeal failed.

Ratio Decidendi: A prior coordinate-bench decision on the same issue binds later adjudication, and bought-out syringes and needles supplied with the product were not eligible inputs for Modvat credit.

---