9911796707
TMI Blog1993 (6) TMI 146X X X X Extracts X X X X X X X X Extracts X X X X ..... sion. In terms of that order, the Assistant Collector had rejected their claim for Modvat Credit in respect of coated Abrasive/Aloxide paper Belt Metalite on the ground that these are appliances which are covered by the exclusion clause (i) appearing under Rule 57A of Central Excise Rules, 1944. 2. In the appeal it has been contended that Aloxide paper Belt Metalite (coated Abrasive) falling under Sub-Heading No. 6802.00 are essentially required for processing pressed rough plywood sheets and V.T. Boards for completion of manufacturing of plywood etc. They had filed necessary declaration under Rule 57G. Show cause notice was issued to them for disallowing Modvat Credit on the ground that such goods were more appropriately in the nature of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ever, I find that the Hon ble South Regional Bench of the Tribunal had taken a contrary view in Collector of Central Excise v. Indian Plywood Mfg. Co. Ltd. -1993 (63) E.L.T. 328. The South Regional Bench decision is dated 12-8-1992 after the two decisions taken by this Bench but the latter had not been published by them. The South Regional Bench decision, however, is of a two Member Bench while the East Bench decisions were by Single Member Bench. It was observed by the South Regional Bench that Sand Paper by virtue of its working on the Plywood has to be taken to be in the nature of a tool which stands excluded from the purview of Rule 57A for the purpose of grant of Modvat Credit by virtue of the explanation under Rule 57A. They distingui ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e manufacture of the goods. 5. With respect, I have to record my views in the matter, which are different. What are excluded from the scope of Modvat benefit are the listed items and only these items will stand disqualified for Modvat purposes. Part of accessories are not specifically covered in the exclusion provision and cannot be brought in by analogy or as a corollary. To hold that by analogy or corollary parts and/or accessories of machines would stand excluded amount to rewriting the provision by supplying words which are missing therein which is not permissible in the context. 6. The excluded items are machines, machinery, plant, equipment, apparatus, tools or appliances used for producing or processing of any goods or for bringi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inates (P) Ltd. It was held that Modvat is admissible for BOPP films used in the manufacture of decorative laminated sheets as separators while placing the sheets in the press. They get partly consumed in the process of manufacture and lose their identity. They are retrieved and do not form part of the final product. 9. The inputs covered in these decisions were used for tool like functions for bringing about change in the goods but were not, on that account, held to be tools. Similarly, electrodes used in the electrolytic process of manufacture of Caustic Soda have been held to be not tools, or machines and hence entitled to Modvat benefit. Further, the finding that the coated paper is used only in relation to the machine and not in or i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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