1997 (2) TMI 263

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....te, for the Respondent. [Order per : V.P. Gulati, Vice President]. - The issue in the appeal relates to availability of Modvat Credit in respect of duty on the following items : (i) Amonia Paper (ii) Tools (iii) Items for which no declaration was filed 2. Shri S. Arulsamy, the learned DR for the department while reiterating the grounds of appeal has pleaded that the lower au....

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....ceded by the learned Counsel for the respondents Modvat Credit would not be available. However, the position will be required to be verified in respect of the items in question with reference to the declaration which was filed at the relevant time. The learned DR pointed out that he has got copy of the same. However, he has no information whether there is any other declaration filed by the assesse....

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.... 8. We observe that the benefit of Modvat Credit is available only in respect of those items which are used and which can be shown to be used in or in relation to the manufacture of the notified finished product. In this connection we have to examine the process of manufacture which gives rise to manufacture of the notified finished product. There can be processes preparatory to the manufac....

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....eatment of effluent will be eligible for the benefit exemption inasmuch as there is integrality of operations as the process of manufacture is related to the material used. Preparation of drawing cannot be considered as a process integrally connected with the manufacturing stream of the notified finished product and therefore, the benefit of Modvat Credit in respect of amonia paper could not be al....