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TMI Blog1994 (5) TMI 127X X X X Extracts X X X X X X X X Extracts X X X X ..... ector (Appeals) had also upheld the contention raised in the appeal that the items in question, namely, strip paper and gummed tapes are appliances used for processing of the goods, used a number of times and then discarded. It was, therefore, held that the said items were not eligible for Modvat benefit. 2. The Appellants were represented by Shri S.C. Mohanty, learned Advocate. He raised two issues. The first one was that the appeal by the Department before the Collector (Appeals) was on a ground totally different from the one considered and decided by the Assistant Collector (Appeals). The proceedings decided at the level of Assistant Collector related to the question whether the restriction on the quantum of Modvat benefit to the exten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... E.L.T. 757 (Tri.) = 1992 (40) E.C.R. 223 holding that 30 PP film used as a separating medium in the manufacture of decorative laminated sheets is eligible for Modvat benefit. This case had been wrongly held to be not applicable to their case. Shri Mohanty, therefore, pleaded that their Appeal has been allowed on merit also, as the gummed tape and strip paper are not apparatus or appliances. 3.Shri N.K. Mandal, learned Departmental Representative replied to the arguments advanced by Shri Mohanty. He justified the impugned order on the legality thereof as well as on its validity on merits. He pleaded that the present Appeal be dismissed. 4. I have considered the submissions of both the sides. The contention raised in the Appeal and reiter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f credit that could be taken but the very principle whether they are eligible inputs. It was held, as already stated above, that they are apparatus required for processing of goods. This being an entirely new issue not arising from the original adjudication order of the Assistant Collector, the proceedings cannot derive any support on the authority of Sec. 35D(2). The contention raised by Shri Mohanty, learned Counsel should succeed. If the credit was sought to be disallowed on a new ground separate and new proceedings should have been initiated and not in continuation of those concluded by the Assistant Collector on a particular issue. 5. No less valid is contention of Shri Mohanty on merits. The application made to the Collector (Appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any other Heading of the Tariff like Chapter 90. The relevance of Tariff Heading for deciding whether an item is a machine, machinery etc. for being excluded from the scope of Rule 57A of Central Excise Rules, 1944 has been approved by the Hon ble Calcutta High Court in Singh Alloys Steel Ltd. v. Asstt. Collr. of C. Ex. - [1993 (66) E.L.T. 594]. Paras 18, 19, 20, 21 and 22 of the said judgment are reproduced below :- 18. The next question is are the items plant, machine, machinery, appliances etc.? In my view, they are not. 19. The items certainly do not come within the dictionary meaning of machines or machinery or instruments or appliances. The items are chemicals and have been classified as such in the Tariff Act. Merely because ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Equipment One or more assemblies capable of performing a complete function. Machine A mechanical, electric, or electronic device, such as a computer, tabulator, sorter or collator. Machinery A group of parts or machines arranged to perform a useful function. Plant The land, buildings, and equipment used in an industry. Tool Any device, instrument, or machine for the performance of an operation, for example, a hammer, saw, lathe, twist drill, drill press, grinder, planner, or screw driver. To equip a factory or industry for production by designing, making and integrating machines, machine tools, and special dies, jigs and instruments so as to achieve manufacture and ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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