2002 (10) TMI 206

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....nst the impugned order-in-original dated 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 po....

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....not be accepted. The bare perusal of the 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 manuf....