9911796707
TMI Blog1992 (3) TMI 193X X X X Extracts X X X X X X X X Extracts X X X X ..... o be examined in the light of the judgment of the Hon ble Supreme Court in the case of J.K. Cotton Spinning Weaving Mills reported in 16 STC 563 and pleaded that a wider meaning should be given to the term used in or in relation to in the context of Rule 57A. He pleaded that hydrochloric acid is used for cleaning the felts and by doing that the life of the felts is increased. He also cited the judgment reported in 1937 STC 9 in the context of as to what could be considered as part or accessory. It was pointed out to the learned Advocate that the matter stood squarely covered by the judgment of this Tribunal in the case of Andhra Pradesh Paper Mills Ltd. v. C.C.E., Guntur, in Order No. 299/1990, dated 4-4-1990. 3. Heard Shri Subramania ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terials used as inputs have a nexus with the process which is integrally connected with the ultimate production of goods till the same are fit for being put in the marketing stream and such process is so integrally connected with ultimate production of goods that it would be commercially inexpedient to produce the finished goods without that process, all such inputs would get the benefit of credit of duty. It is observed that the stress is on the processes which are integrally connected with the production of the goods. Therefore, for the items to pass the test of eligibility to the benefit of the MODVAT credit will be such that they participate in the process of manufacture without which the end-product cannot be produced. In the present c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out before the actual manufacturing process of the goods can start or these may be related to the preparing of the material which have ultimately to go into the manufacturing stream or in preparing of certain materials which directly or indirectly participate in the manufacturing process in a manner that these help in the process of manufacture to be carried a step further. The inputs used in these processes for manufacture of the products which are in turn used in the manufacturing stream of the finished product can be taken to have been used in the manufacture or in relation to the manufacture of the finished product. Generation of steam which ultimately participates in the manufacturing processes is one such item. The other may be pre-t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e these participate in the manufacture of the end-product by being a part of the paper making machinery these by themselves do not participate in the process which are carried out in processing the materials which ultimately lead to the manufacture of paper. We observe that while allowing MODVAT credit regard will have to be had to the purpose of the scheme i.e. to reduce the cascading effect of the duty on the finished product by way of relief of the duty paid in respect of the goods which are used in or in relation to the manufacture of the finished product. The machineries, equipments and apparatus by themselves have been precluded from the benefit of the MODVAT credit. Cascading effect of the duty paid on the machinery used in or in rel ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
