2000 (12) TMI 565

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.... The issue involved in the appeal, filed by M/s. J.C.T. Ltd. is whether Modvat credit under Rule 57A of the Central Excise Rules is available in respect of rustop and Servo System-68. 2. Shri Jitendra Singh, ld. Advocate, submitted that the appellants manufacture steel wires out of wire rod; that Rustop is an anti-rust material and is used for lubricating the steel wires so that they do no....

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....he case of C.C.E., Meerut v. Modi Rubber Ltd., 2000 (119) E.L.T. 197 wherein it was held that unless the machinery is lubricated with the lubricants, heat will be generated on account of mechanical friction between the working surfaces of the machinery leading to adverse consequence affecting the process of manufacture and these facts would suffice to hold that lubrication of machines and machiner....

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....of the final products. The product rustop is used to prevent rusting of the steel wires manufactured by the appellants. The steel wires are put into the market only after application of anti-rust material and, therefore, it cannot be said that it is not used in relation to manufacture of the final products of the Appellants. This view is squarely covered by the decision in the case of Addison Co.,....