2003 (1) TMI 568

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....ectly and whether contained in the final product or not" incorporated in Rule 57B(1) of the Rules has been used to widen and expand the scope, meaning and content of the expression inputs so as to attract also goods which do not enter directly or indirectly into the finished product but are used in any activity concerned with or pertaining to the manufacture of finished goods; that paints are used in relation to the manufacture of finished goods and allowed the credit under Rule 57B of the Rules. 2. The grounds taken by the Revenue are - "Paints are used for painting the machinery and pipeline to protect from moisture, rust and corrosion. Rule 57B(1) of the Central Excise Rules, 1944 allows credit of duty paid on the inputs used ....

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....e used in the maintenance of machinery and pipelines, the decision of Commissioner (Appeals) vide Order-in-Appeal No.  266/2000 (V) C.E., dated 21-12-2000 in allowing Modvat credit on paints is not correct in law and not sustainable." 3. We have heard both sides and the submissions and find - (a) The learned Departmental Representative relied upon the decisions in the case of Associated Cement Co. Ltd. v. Collector of Central Excise reported in 1991 (55) E.L.T. 415 (Tribunal) and in the case of Synthetic and Chemicals Ltd. v. Collector of Central Excise, Kanpur reported in 1997 (90) E.L.T. 191 (Tribunal) and submitted that the items used for maintenance and upkeep of the machinery cannot be considered and cannot avail t....