9911796707
TMI Blog1996 (4) TMI 194X X X X Extracts X X X X X X X X Extracts X X X X ..... The captioned appeals have been filed by the department on the ground that luggage carrier is not an essential accessory and therefore Modvat credit was not available on this. 2. The facts of the case in brief are that the respondents are engaged in the manufacture of motor vehicles. The Rule 123 of Central Motor Vehicle Rules, 1989 reads no motor cycle which has provision for pillion ri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in terms of this requirement a safety device was an essential item. The learned Counsel referred to the larger Bench decision in the case of Lipi Data System reported in 1995 (80) E.L.T. 542 and submitted that in view of the ratio of the larger Bench judgment after taking into consideration the judgment of the Hon ble Patna High Court and other judgments rendered by the Tribunal in respect of tool ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accessory but the department contested that it was an optional and not an essential one. The learned Counsel submitted that the goods described by them as luggage carrier was essential not only for the safety purpose but it was essential to be fitted in the vehicle before the vehicle is taken out. The learned Counsel submitted that foot mats are not `used in the manufacture of motor vehicles, bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case law cited and relied upon. I find that larger Bench of the Tribunal had examined the issue as to what should be criterian for deciding whether an item is `used in `in relation to manufacture of final product. The test laid down by the Tribunal was that item must be essential for its functioning. Now subjecting the present goods to this test. I find that it is not only normal requirement of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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