1998 (3) TMI 324

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....are engaged in the manufacture of copper alloys strips and foils, Aluminium pressure cookers and aluminium racks. For manufacture of brass strips and foils in the rolling mill the Appellant used lubricating oil in the continuous process of rolling. The department alleged that lubricating oil is not used in or in relation to the manufacture of strips and foils of brass, therefore, Modvat credit under Rule 57A was not admissible to the appellants. The Collector (Appeals) upheld the view put forth by the respondent herein and allowed the appeal of the respondent. Hence the department has filed the present appeal before us. 3. Shri Sanjeev Srivastava, ld. JDR appearing for the appellant Commissioner submits that their case is covered by....

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....Commissioner (Appeals) may be set aside and the appeal may be allowed. 4. Shri R.S. Pandey, ld. Consultant appearing for the respondent submits that in their petition before the ld. Commissioner (Appeals), they had clearly indicated that in the rolling mill during the rolling process of copper alloy sheet (brass) lubricating oil is used to prevent scratches and other defects developing in the strips. He submits that in the process of rolling, there is continuous fall of the lubricating oil. He submits that their case is fully covered by the ratio of the Tribunal's decision in the case of Pragati Paper Mills (P) Ltd. v. Collector of Central Excise, Meerut as reported in 1996 (88) E.L.T.137. Ld. Consultant also brings to our notice th....

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....f final product. The doubt may arise only in regard to use of some article not in the main stream of the manufacturing process but in another stream of manufacturing something which is to be used for rendering final product marketable or used otherwise in assisting the process of manufacture. Such doubt is set at rest by use of the words "used in relation to the manufacture".It is true that sand mould is not a raw material actually used in the manufacturing process of final product in the sense that when mixed with some other articles it would produce the final product. Sand mould is also not used in the preparation of some other article which is necessary to render the final product marketable. It is an article which has a significant role....