1991 (8) TMI 224

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....y also manufacture printing ink for captive consumption in the printing of aluminium foils. They also purchase printing ink from outside. They claimed modvat benefit in respect of duty paid on printing ink obtained from outside on payment of duty and also in respect of duty paid on solvents, chemicals etc. used in the preparation of printing ink used for captive consumption in the printing of aluminium foils. They claimed the benefit of exemption in respect of printing ink used captively in printing of aluminium foils under Notification No. 217/86. While submitting the classification list claiming exemption for printing ink in terms of Notification No. 217/86, they indicated that they would be availing of modvat benefit in respect of duty p....

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....e. 4. After hearing Shri Sejpal, the Ld. Advocate, we observe that though the Collector (Appeals) has dealt with two issues in the said order, the Department has come up in appeal only against the allowing modvat credit in respect of input chemicals/solvents used in the preparation of printing ink, which, in turn is used captively in printing of aluminium foils. The other issue relating to exemption of cylinders allowed by the Collector (Appeals) is not agitated before us in this appeal. Hence, confining ourselves to the issue raised before us, we find the question to be answered in this appeal falls within the short compass - as to whether printing ink manufactured by the respondents and captively consumed in the manufacture of fin....

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.... judging on the correctness of the order, we looked at the issue from two angles (i) whether there is any revenue loss; (ii) whether printing ink, in this case, could be construed as intermediate product. 6. On the first angle referred to above, it is not disputed that if the respondents agree to load themselves with the scriptory work and keep away from Notification No. 217/86, they can avail credit in respect of duty paid on inputs used in printing ink, on which they can pay duty, which duty can be utilised against the duty payable on printed aluminium foils. Even Shri Naik, on our query conceded this position. Hence, extension of modvat credit, in this case, does not have any revenue loss. If it is denied, they can always avail t....