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TMI Blog1991 (10) TMI 146X X X X Extracts X X X X X X X X Extracts X X X X ..... filed against it. By the impugned order, the Collector (Appeals) partially upheld the Order-in-Original dated 6-8-1989 passed by the Assistant Collector of Central Excise, Rishra Division holding that modvat credit was not admissible to them in respect of Resins in the manufacture of sand moulds in the course of manufacture of parts of motor vehicles and internal combustion engines by the casting process. 2. Shri S.K. Bagaria, learned Counsel for the applicants argued their case when the Stay Petition was called. He stated that the so-called sand moulds come into existence at an intermediate stage in the course of manufacture of castings. These are made of sand with the help of the resins which are used to bind the sand to give it some sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ector in his Order-in-Original. The Collector (Appeals) had in an earlier appeal taken a contrary view which is in support of their contention. That was in an appeal filed by M/s. Balaji Steel Castings. A copy of that order has been submitted by them. 3. Shri Bagaria fairly conceded that the South and West Regional Benches of the Tribunal had taken decisions adverse to the stand being taken by him. These decisions are in the case of - (1) Mukand Iron Steel Works v. Collector of Central Excise, Bombay-III, reported in 1990 (48) E.L.T. 552 (Tri.) = 1990 (30) ECR 252 (CEGAT, WRB) (2) Shivaji Works Ltd. v. Collector of Central Excise, reported in 1990 (50) E.L.T. 40 (Tribunal) (WRB) (3) Mysore Kirloskar Ltd. v. Collector of Central Ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the resins are used only for the manufacture of sand moulds and not for the manufacture of castings would not be correct. No manufacture of sand moulds is involved as they are not goods. Manufacture can be only of goods. As the sand moulds are not goods as they do not satisfy the criteria of removability or marketability, they are covered by the judgment of the Supreme Court on what is manufacture as laid down by them in the Bhor Industries case and Ambalal Sarabhai case -1989 (40) E:L.T. 280 and 1989 (43) E.L.T. 214 respectively. The resins are thus not used in the manufacture of any goods, intermediate products or otherwise but used in the manufacturing process of castings themselves. They are thus covered by the requirement of Rule 57A. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appeals) on the merits of the issue are correct and deserve to be upheld. The application for stay may, therefore, be dismissed as the applicants do not have any case on merits. There is also no financial hardship involved, he concluded. 7. We have considered the arguments advanced by both sides. Fiercely contentious issues have been raised for and against the stay application based on the merits of the issue involved. Several decisions of the Supreme Court and of the Tribunal have been cited. We also find that subsequent to the said decisions there have been two decisions on related issues. In Hindustan Sanitaryware Industries Limited v. Collector of Central Excise, reported in 1991 (55) E.L.T. 248 it has been held by the Special Bench ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of Paris moulds used for manufacture of ceramic ware. 8. Of more direct relevance is a recent and as yet an unreported decision of the North Regional Bench of the Tribunal in Collector of Central Excise, Chandigarh v. M/s. Leader Engineering Works, Jalandhar (Order No. A 436 to A 445/91-NRB dated 12-8-1991) wherein it had been, inter alia, held that chemicals used for production of sand cores and sand moulds which are then utilised in the production of final product would be eligible for modvat benefit. 9. As there are decisions both for and against the admissibility of modvat credit on chemicals/resins used for production of sand moulds used in the manufacture of castings, the ones in favour being later and rendered after taking not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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