30th Meeting of Customs & Central Excise Advisory Council - Whether bladders, air bags, shaper tubes and curing bags can be treated as input under Rule 57A - Point regarding - Central Excise - 263/30/87-CX.8

30th Meeting of Customs Central Excise Advisory Council - Whether bladders, air bags, shaper tubes and curing bags can be treated as input under Rule 57A - Point regarding F. No. 263/30/87-CX.8 Dated 29-1-1988 Government of India Ministry of Finance (Department of Revenue) New Delhi Sub : 30th Meeting of Customs Central Excise Advisory Council - Whether bladders, air bags, shaper tubes and curing bags can be treated as input under Rule 57A - Point regarding. I am directed to invite your attention to point No. 29 of 30th Meeting of Customs and Central Excise Advisory Council held on 30-10-1987 wherein it was decided that the matter would be examined after ascertaining the facts from the field formations. Reports from Collectors have soon received wherein it appears that divergent practices are prevailing in the matter of treating the aforesaid items as inputs under Rule 57A. The matter has been examined by the Board and it has been observed that the above mentioned items are used inside the tyre during vulcanisation for giving proper shape to the tyre and are taken out thereafter for identical operations in other tyres. Thus these items are put to repeated use till they are eventually worn out. By the very nature of their use it is seen that they are more akin to that of an appliance/apparatus/equipment and cannot be treated as inputs in terms of the Modvat provisions and therefore are not eligible for Modvat credit. These instructions may be brought to the notice of the field formations. Please acknowledge the receipt of this letter.