Per Jyoti Balasundaram :

The issue for determination in this appeal is the eligibility of the appellants to Modvat Credit of Rs. 4,07,871.51 P. Availed of by them on 28.1.88 on Selenium drums and ASM Blades-280 utilised as inputs in the manufacture of Photocopiers cleared during the period April 1986 to April 1987.

2. Initially, the appellants' stand was that these items did not form part of the Photo copying Machines as they were imported and supplied under separate invoices and therefore, were in the nature of consumables and hence not includible in the assessable value of the finished product namely Photo copying machines. Vide order dated 20th October, 1987, the Assistant Collector held that the above mentioned items are parts of Photo copying machines and are to be included in the value of the Photo copying machines. This order was confirmed by the Collector (Appeals) by order dated 4.3.87. On the introduction of the Modvat Scheme in March, 1986, the appellants filed a declaration containing details of inputs and final products on 10.3.86. At that point of time, there was no proforma prescribed for the Modvat declaration.

3. In December, 1986, the Excise Department wrote to