9911796707
TMI Blog1994 (5) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... nation and would not be considered as `input for the purpose of modvat under Rule 57A of Central Excise Rules. I am, therefore, not inclined to accept the defence arguments and hold that duty paid on grinding belts cannot be taken credit of for payment of duty on handtools, the final product, under modvat scheme `Grinding Belts not being input in terms of explanation appended to Rule 57-A of the Central Excise Rules. 2. Briefly stated the facts of the case are that the appellant is a manufacturer of handtools. Grinding Belt was declared as an input and modvat credit amounting to Rs. 85,783.11 was taken during the period September, 1989 to January, 1990. While finalising the RT 12 assessment, the Superintendent, Central Excise asked the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly not maintainable. Citing the judgment of the Hon ble Supreme Court in the case of J.K. Cotton Spinning and Weaving Mills Co. Ltd. reported in 1985 (16) STC 563, the appellant has submitted that the Hon ble Supreme Court held :- The expression, in the manufacture of goods should normally encompass the entire process carried on by the dealer of converting raw materials into finished goods. Where any particular process is not integrally connected with the ultimate production of the goods but for that process manufacture or processing of goods would be commercially inexpedient, goods required in that process would in our judgment, fall within the expression `in the manufacture of goods . 6. Referring to the Tribunal s judgment reported ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, leather or other materials in rolls or cut to shape (sheets, bands, strips, discs, segments, etc.), or in threads or cords, on to which crushed natural or artificial abrasives have been coated, usually by means of glue or plastics. The heading also covers similar products of non-wovens, in which abrasives are uniformly dispersed throughout the mass and fixed on to textile fibres by the bonding substance. The abrasives used emery, corundum, silicon carbide, garnet, pumice, flint, quartz, sand and glass powder. The bands, discs, etc., may be sewn, stapled, glued or otherwise made up; the heading includes, for example, tools such as buff sticks, made by permanently fixing abrasive paper or cloth on to blocks or strips of wood etc. 9. Tho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , apparatus or contrivance which falls in the Exclusion category. At one point the appellant had pleaded that Grinding Belts are used like steel balls in a cement mill. Steel balls in the cement mill are used for crushing etc., and cannot be termed as tools or apparatus. Operationally, therefore, they are different from the use of Grinding Belts as Grinding Belts are used for cleaning and polishing and function as tools. Other issues are not very relevant and therefore are not being specifically commented upon. 10. Having regard to the above findings that Grinding Belt falls in the category of Exclusion items under Rule 57-A, I hold that Modvat credit will not be admissible on them. In this view of the matter, the impugned order is upheld ..... X X X X Extracts X X X X X X X X Extracts X X X X
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