TaxTMI 
TaxTMI 
2001 (7) TMI 568
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....a Ltd. (SAIL) and had filed an appeal E/42/88 (MAS) challenging the grant of Modvat in respect of Inter Leaving Kraft paper used in the manufacture of stainless steel sheets under Rule 57A of the Central Excise Rules. The Tribunal after due consideration of the submissions made by both the sides allowed the appeal of the Revenue by holding in para 4 of the Final Order No. 153/89 dated 30-3-1989 as follows :- "We have carefully considered the submissions made by the learned SDR and the papers filed by the respondents. The question is whether the interleaving kraft paper can be considered as an input for purpose of MODVAT credit in terms of Rule 57A of the Central Excise Rules, 1944. It is stated that the interleaving kraft paper is used d....
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....onsidered to be input used in or in relation to manufacture of the stainless steel strips for the purpose of Rule 57A of the Central Excise Rules, 1944? and (ii) whether the Customs, Excise and Gold (Control) Appellate Tribunal had any material to take the view that interleaving kraft paper used in different stages of manufacture of stainless steel strips/sheets to avoid rubbing scratches to the material during rolling operation of the in process goods can be considered to be in the nature of equipment of appliance in the absence of any plea even beyond of actual proof to that effect by the respondents at any stage of the proceedings Arising of Appeal No. E/42/88(MAS) 249/87 (CBE) dated 26-10-1987 on the file of t....
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.... 57A of the Central Excise Rules." 2. Rule 57A as it then stood in the explanation under the proviso set out an inclusive definition of inputs with an explanation which reads as under : For the purpose of this rules "inputs" includes : (a) inputs which are manufactured and used within the factory of production in or, in relation to, the manufacture of final products, and (b) paints and packaging materials, but does not include : (i) Machines, machinery, plant, equipment, apparatus, tools or appliances used for producing or processing or any goods or bringing about any change in any substance or in relation to the manufacture of the final products : (ii)....
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....ngs which are not themselves consumed in the process of manufacture. It is not the case of the Revenue that the manufacturer had availed any exemption for the duty of excise payable on the value of the paper by regarding the same as packaging material. The finding recorded by the Collector of Central Excise is that this paper is used in the process of manufacture. In the course of his order, the Collector has stated that every coiling operation in this process flows through various processing units with interleaving paper and that the interleaving paper is taken out in the next processing during uncoiling and further that the coils undergo generally six to seven uncoiling and recoiling operations depending on the grade and gauge of stain....