Swadeshi Cotton Mills Co. Ltd. vs Sales Tax Officer And Anr. on 25 March, 1964
Use of Aluminium sheets is directly in the manufacturing process and since these cannot be treated as equipment by itself, use of the same has to be taken to be in relation to the manufacture of the specified final product under Rule 57A as in the case of Titanium Metal Anodes in respect of which Modvat Credit has been held to be admissible. It is observed that the term 'inputs' used under Rule 57A has a wider import. Aluminium sheets used being not equipment as such and since these participate in the manufacturing process, have to be taken to be covered by the provisions of Rule 57A for grant of MODVAT Credit. The Hon'ble Supreme Court in the case of JK Cotton Mills Co. Ltd. v. Sales Tax Officer examined the scope of the term goods used 'in the manufacture' in the context of Rule 18 framed in the context of Section 13 of the Central Sales Tax Act, 1956, [and] has held as under: