S. Kalyanam, Member (J)

1. This appeal is directed against the order of the Collector of Central Excise (Appeals), Bangalore dated 30-9-1991 confirming the order of the Assistant Collector of Central Excise, Mysore dated 27-3-1991 and rejecting the appellant's claim for Modvat credit on printer ribbons used in relation to the manufacture of printers' for Computers.

2. Shri Khunger, the learned Consultant for the appellant contended that there is a heavy dependence on the ribbons for the proper functioning of the printer and therefore on the basis of heavy functional dependence of the printer, the ribbon which is absolutely indispensable and without it the printer cannot function should be construed to be an input eligible for Modvat credit. It was further urged that the printer has no computational ability on its own and without the ribbon the printer cannot print or print out any. The ribbons are specially designed for exclusive use in conjunction with the printers and have no other use. It was further urged that the value of "Ribbon" is included in the assessed value of the printer by the Department for the purpose of excise duty and therefore on the same reasoning the "Ribbon