1994 (5) TMI 102

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....led a claim for grant of Modvat credit on certain inputs, including ribbons for use in or in relation to manufacture of their final product namely Line Printers under Rule 57H of the Central Excise Rules, 1944 vide their letter dated 17-4-1987 and claimed credit on Countervailing duty paid by them on the stock of inputs as on 1-3-1987. The Modvat credit was extended to all the inputs except ribbons on the ground inter alia that ribbons had not been declared in the declaration filed in terms of Rule 57G and that ribbons which were used captively in line printers, fell for classification under Heading 9612.00 of the Central Excise Tariff Act, 1985 and exempt from duty under Notification No. 217/86, dated 2-4-1986 and according to Rule 57D, Mo....

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....l and marketable not an accessory therefor. He also relies upon the order of the Tribunal in the case of Collector of Central Excise v. Swaraj Mazda reported in 1993 (68) E.L.T. 258 in which Floor mats specifically designed for use in particular types of Motor vehicles and normally supplied with it, have been held to be inputs used in relation to the manufacture of light commercial vehicles and eligible to Modvat credit under Rule 57A. He also submits that the ribbon is sold with line printers and is essential for marketability of the line printers. He urges that in view of conflicting orders of the Tribunal on this issue, i.e. as to whether an accessory is also to be considered as an input used in or in relation to the manufacture of the f....