1992 (3) TMI 178

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.... the Respondent. [Order]. - This is an appeal preferred against the Order-in-Appeal No. 4/CE/IND/91 dated 9-4-1991 passed by the Collector of Central Excise (Appeals), Indore, M.P. 2. The point to be considered in this case is whether Modvat credit is permissible on lead used in the process of galvanisation of final product or not. Modvat credit was denied by the Assistant Collector on th....

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....ated 1-3-1986 are entitled to Modvat credit if used in or in relation to the manufacture of the final products. He contended that it is not correct to say that lead was not consumed in the process of manufacture of the final products and inasmuch as it was used and consumed in the process of galvanisation of finished product and in support of his contention, he relied upon the technical literature....

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....at the inputs used should be present in the final product in order to qualify for modvat benefit. As long as they are used in or in relation to the manufacture of the final products and are not specifically excluded from the scope of the benefit in the explanation clause in Rule 57A or by exclusion in Notification No. 177/86-C.E., modvat credit has to be allowed. He cited the following decisions i....

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....n quality of galvanisation of steel, it cannot be denied that lead is used to raise the surface level of the zinc and hence it is more in the nature of an aid to the equipment or appliance. Therefore, even if lead brings about a change in the final product it cannot get included as an input because of the explanation to Rule 57A. Lead can at the most be considered a lining material for the galvani....