MELTON INDIA LTD Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE following question is referred to the Larger Bench:

(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 met -alliser 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 vacuum chamber and the aluminium wire is continuously fed in from the other side to the evaporation boat where it is vapourised and evaporated. The thermal, mechanical and electrical conditions require the ceramic product which precisely meets the demand of this kind of application. The evaporator boats used by the appellants fulfil these requirements. After metallising, certain quantity of films, ceramic evaporator boats are to be replaced. The Boron Nitrate suspension is used as coating material over the boat section so that the vapourised aluminium does not stick over the boat. The contention of the appellants is that the evaporation boats and Boron Nitrate suspension are in the nature of consumables and without these items, it is not possible to metallise the polyester film, hence are inputs under Rule 57A of the Central Excise Rules.

(3.) THE appellants relied upon the following decisions :