1988 (6) TMI 209

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....sh Chiandra, Director of the Respondent Company. [Order per : K.S. Venkataramani, Member (T)]. -This appeal has been preferred by the Collector of Central Excise, Coimbatore, against the order dated 30-6-1987 passed by the Collector of Central Excise (Appeals), Madras by which he had upheld the order of the Assistant Collector of Central Excise, Hosur Division, dated 18-12-1986 holding that the....

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....f duty paid on the plastic raw materials used for testing the machines for payment of duty on the finished machine under Rule 57A of the Central Excise Rules relating to MODVAT credit. The Assistant Collector held that they were eligible to utilise the credit for paying duty on the extrusion machines. This decision was challenged by the Department before the Collector (Appeals) by filing an applic....

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....nnot be said to be used in relation to the manufacture of the end product namely, the extrusion machine. 4. Shri Subash Chandra, Director of the respondent firm, on the other hand, contended that the terminology of Rule57A is to .the effect that materials used in or in relation to the manufacture of fhe final product'would be eligible'for MODVAT credit, and it is wide enough to cover the plastic ....

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....t tubings without any defects. Therefore, the plastic granules come to be used after the final product namely, the extrusion machine, manufactured by the respondents is fully finished. The testing is only done to detect defects if any in the finished product. In tHis view of the matter, and having regard to the scope of Rule 57A, we are unable to agree with the respondents that materials used for ....