9911796707
TMI Blog1995 (8) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... emaining upon evaporation of the solvent shall not exceed 1.25 x 10g = 4/in (0.94 m2) of internal surface. It further says that to maintain this level of cleanliness in shipping, handling and storage the purchaser may request that the manufacturer seal the tube ends with caps and closures. From this it can be inferred that sealing of tubes is not necessary condition for the marketability of the product as the word used is `may this means that certain buyers may insist on affixing the caps and other may purchase without the same. I agree with the view of the learned Assistant Collector that caps/rubber plugs cannot be treated as packaging material as nothing is contained/wrapped/wound in these plugs. If one goes through the dictionary meani ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion to the manufacture of the final products. Accordingly, a show cause notice was issued to the appellants to state as to why the Modvat Credit on the rubber plugs should not be denied to them. The appellants submitted that modvat scheme obviated the cascading effect of duty paid on the articles which do not enter the stream of the market as such but go into the manufacture of other goods; that the definition of the expression `inputs has been left wide open enough by providing inclusions and exclusions; that the Hon ble Supreme Court in the case of East End Paper Industries Limited reported in 1989 (43) E.L.T. 201 (SC) had held that the expression `component parts and `raw materials will mean anything that enters into and forms a part o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l requirement to be goods to be wrapped in paper; that Apex Court further held that - Anything required to make the goods marketable, must form part of the manufacture and any raw material or any materials used for the same would be component part for the end-product. 4. Referring to the Hon ble Supreme Court judgment in the case of Jay Engineering Works Ltd. reported in 1989 (39) E.L.T. 169, the learned counsel submitted that the Apex Court had held that the commodity manual on electric fan made it obligatory for every manufacturer to affix the nameplates on the fan. In the circumstances, the nameplates are essential for marketing of the fan. In other words, they could not be marketed without the nameplates. The affixing of the nameplate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ube and submitted that in case the rubber plugs were not fitted to the tube, inside surface cleanliness cannot be maintained. Referring to the Indian Standard, the learned counsel submitted that same was the case under IS : 8119-76. He submitted that fixing of the rubber plugs was essential for making the copper brazed steel tubes marketable. He referred to an order of Bajaj Auto placed on record stating clearly that - Tubes with caps fitted at both ends is acceptable to us. Please send pilot lot of 1000 mtrs. with caps at both ends . The learned counsel submitted that the admitted position was that no copper brazed steel tubes manufactured by them were supplied without rubber plugs at both ends. Referring to a test certificate, the ld. co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... findings of the lower authorities, the learned DR submitted that the appeal may be rejected. 8. Heard the submissions of both sides, perused the case law cited and relied upon and considered the submissions made before me. The lower authorities have held that the rubber plugs cannot be treated as packing material. On this issue, the learned Counsel referred to the decision of the Tribunal in the case of Hindustan Lever Ltd. v. Collector of Central Excise reported in 1994 (70) E.L.T. 595 wherein the Tribunal [in para 4] had held as under : ****** After discussing the subject that the term `packaging material cannot be given restricted interpretation saying that only packaging material that will stand excluded will be thus specificall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Central Excises and Salt Act, 1944. I find that the rubber plugs are essential for closing the ends of the tubes to prevent them from contamination. This fact is very clearly brought out by ASTM and the ISI specification for such tubes. Having regard to this aspect, I hold that the ratio of this decision of the Tribunal will be applicable to the fact of the present case. 11. The appellants also relied on the ratio of the decision of the Tribunal in the case of Collector of Central Excise v. Salem Steel Plant cited supra. In this case, the Tribunal had held that - Surface protection film being used to render the goods marketable is considered to be used in or in relation to the manufacture of high finished stainless steel tubes. The ben ..... X X X X Extracts X X X X X X X X Extracts X X X X
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