2002 (10) TMI 206

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....ted 27-2-2002/7-3-2002. 2. The issue involved in the present appeal relates to the availability of Modvat credit to the appellants in respect of Polythene Bags. The appellants have taken Modvat credit of Rs. 19,323/- in respect of these bags by declaring the same as inputs. The adjudicating authority had disallowed the Modvat credit on the ground that the polythene bags were never used in or in r....

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....said Rule shows that the Modvat credit can be claimed in respect of inputs used in the manufacture of the final products or used in or in relation to the manufacture of the final products. In the instant case, the polythene bags are being neither used directly in the manufacture of the final products i.e. cables nor indirectly in or in relation to the manufacture of the final products. These are b....