NOVOPAN INDUSTRIES LTD. Vs. COMMISSIONER OF CENTRAL EXCISE,

JUDGEMENT

(1.) In all these four appeals a common question of law and facts are involved and hence they are taken up together for disposal as per law.

(2.) The Commissioner (Appeals), Hyderabade vide his order in Appeal No.48/99(H -I)CE dt.19.4.1999 arising from four order deciding the case confirming the order in original passed by the Assistant Commissioner. Besides the issue pertaining to grant of Modvat on lubricating oil and another item namely pumps used for filling water in connection with manufacturing process was also considered. On the latter item, the Commissioner agreed with the assessee and set aside the order in Original and hence the Modvat credit was held to be eligible to two pumps used for filling water in connection with the manufacturing process. However, he disagreed with the assessee with regard to the granting Modvat credit on the lubricating oil and confirmed the view expressed by the Assistant commissioner by holding that lubricating oil cannot be considered as an inputs as it cannot be said to be used in or in relation to the manufacture of the final product or that they are used for effective functioning of the machinery. However, he agreed with the assessee in so far as the documents produced received from IOCL.

(3.) The Ld. Counsel submits that the issue is no longer rs integra and the Larger Bench of this Tribunal in the case of C.C.E. Vs. Modi Rubber Ltd. 2000 (119) ELT 197 (T -LB) has held that lubricating oils and greases used for the purpose for lubricating the machine and machinery used for manufacture of the final product should be granted with Modvat credit.It has been further held that lubrication of the machine is essential for their working and is integrally connected with the manufacture, hence lubricants in question qualified to be inputs' for the purpose of Modvat credit under Rule 57 A of Central Excise Rules 1944.