1991 (12) TMI 167

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....rder per : S. Kalyanam, Member (J)]. - This appeal is filed by the Department and is directed against the order of the Collector of Central Excise (Appeals), Madras dated 17-5-1988 giving the respondents herein the benefit of Modvat credit in respect of "Surface Protection Film" used as an input in the manufacture of High finished stainless steel sheets. Shri R. Subramaniam, Id. D.R. adopted the....

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....able in terms of Rule 57A. The fact would appear to be that the value has also been included. The lower appellate authority has held that the plastic film is more akin to painting of the sheets than packing and, therefore, would be eligible for Modvat credit. We were explained by the learned counsel that high finished stainless steel would not serve any purpose without this protective layer coatin....

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....o plea from the Revenue that the sheets are at all marketed by the respondents without the film coated on to the sheet. There is also no dispute that the sheets of the type manufactured require a coating of the film as affixed as pleaded by the respondents. The question, therefore, to be considered is whether the use in such circumstances could be considered to be in or in relation to the manufact....