2001 (2) TMI 418

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.... [Order]. -  The issue involved in this appeal filed by the Revenue is whether Modvat credit is available to the Respondents, M/s A.K. Automatics in respect of CRB Plus, Hyspi-Ep, Rx Super and Magna-100 used as coolants in turning and grinding process. 2. When the matter was called no one was present on behalf of the Respondents in spite of notice. I also observed that the Respond....

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....odvat credit scheme. 4. I have considered the submissions of the ld. DR and perused the records. I observe from the Adjudication Order No. 58/98, dated 21-5-1998 that the impugned goods were used as coolant to cooldown the machines in turning and grinding operations. For the purpose of availing of Modvat credit under Rule 57A, it is not necessary that the inputs should form the part of the....

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....her the goods are used in the machinery or for the purpose of the machinery." The Tribunal came to the conclusion that lubrication of the machinery is an activity which is concerned with or pertaining to the manufacture of the finished goods. It is rather integrally connected with the manufacture. The use of lubricants in the machinery is certainly in or in relation to the manufacture of the finis....