SAMTEL COLOUR LTD. Vs. CCE

JUDGEMENT

(1.) HEARD both sides.

(2.) THE appellants filed this appeal against order -in -appeal passed by the Commissioner (Appeals) whereby the benefit of Modvat credit in respect of paints used in the shop floor is denied to the appellant.

(3.) THE Contention of the appellant is that they are engaged in the manufacture of colour picture rubes and for the assembly of colour picture tubes dust free atmosphere is required in the shop floor. To attain this dust free environment. They are using special type of paint on the shop floor of production hall to make it dust free and fire retardant. The contention of the appellant is that as per the definition of input during the relevant period includes all goods used in or in relation to the manufacture of final products whether directly or indirectly and whether contained in the final product or not and includes goods used as paints used for manufacture of final product or for any other purpose within the factory of production. The contention is that special paints are used to attain the dust free environment and also fire retardant atmosphere in the factory.