(1.) REVENUE is aggrieved with the grant of modvat credit on lubricating oil by the Commissioner (Appeals) in terms of several judgements of the Tribunal noted by him in his order. The ground taken by the Revenue in this appeal is that the item is not entitled for the benefit of the modvat credit. It is stated that the item "Servo Oil" is used only for lubricating the machines/machinery whose function is purely of maintenance of machines/machinery and cannot be equated to use in or in relation to the manufacture of final product.
(2.) I have heard both sides in the matter.
(3.) IT is seen that the issue is covered by the Tribunal rendered in the case of CCE 82, CC v. Modi Rubber Ltd., reported in . The item in question is entitled for benefit of modvat credit. Further more, the Apex Court in the case of CCE v. Jawahar Mills Ltd. 2001 (45) RLT 739 : 2001 (97) ECR 541(SC) has also well laid down the salient features for grant of modvat credit. Even similar proposition was laid in its earlier judgement in the case of GOI v. Solar Pesticides 2001 (116) ELT 401 . Admittedly, the item is used for only machines which are used in the manufacture of final products. Therefore, the Commissioner (Appeals) has correctly granted the benefit and the order is legal and proper. There is no merit in this appeal and hence it is rejected.