2000 (9) TMI 93

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.... 2.M/s. Melton India Ltd. are engaged in the manufacture of Metallised Polyester and other plastic films. As per the appellants in the process of Metallising the polyester films, refractory ceramic evaporation boats are used for evaporating the aluminium wire and also Boron Nitrate suspension is used as coating material over the boat section. The process of vacuum metallising, as explained by the appellants, is undertaken in the vacuum chamber of the metalliser where the plastic film is coated with an even or uniform layer of aluminium. The ceramic evaporation boats are used for the reason that they are having the property of resisting the temperature upto 1500 degree C under vacuum. The plastic rolls are loaded from one side of the vacu....

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....sp;    1999 (111) E.L.T. 9 (Pat.) = 1999 (31) RLT 800 (Pat.) (C.C.E., Patna v. TELCO). 4.The contention of the appellants is that in the above decisions, the benefit of Modvat credit in respect of graphite boats used as containers and parts of machines were held to be inputs under rule 57A of the Central Excise Rules. The Larger Bench of the Tribunal in the case of Union Carbide India Ltd. (supra) held that parts of machine are entitled for the benefit of credit under Rule 57A of the Rules. ld. Counsel, further, submits that the Larger Bench decision in the case of Union Carbide India v. C.C.E. was upheld by the Hon'ble Patna High Court in the case of C.C.E. v. TELCO (supra). The ld. Counsel also relies upon the decisions ....

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....ect Boron Nitrate suspension held that it in the form of equipment and though not directly used for producing or processing of goods but may be considered as equipment used in relation to the manufacture of final product. We find that the revenue is not questioning the use of this Boron Nitrate suspension in the manufacture of metallised polyester film as explained by the appellants. As the Boron Nitrate suspension is used as quoting material over boats so that the vapourised aluminium does not stick over the boats and got consumed during this process. Hence Boron Nitrate suspension clearly participates in the manufacturing process and will be eligible as an input used in the manufacture of final product. 8.In respect of ceramic evaporat....