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TMI Blog1996 (4) TMI 245X X X X Extracts X X X X X X X X Extracts X X X X ..... t interrupt the functioning or operation of the TV sets. He held that such glass was not an essential component for functioning of the sets. He denied the modvat credit and confirmed the demand of Rs. 28,306/- on Uptron India. In the proceedings before him the Collector (Appeals) observed that such glass was an optional accessory which a buyer may use depending upon his needs. He upheld the original order in toto giving rise to this appeal. 2. The case for the appellant was argued by Advocate Shri R.N. Srivastva. Shri Ram Sharan, JDR appeared for the revenue. 3. Ld. advocate referred to the instructions manual of the Television sets manufactured by the appellant wherein the specifications of such televisions were given. Referring to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ker as eligible inputs cannot be denied on these grounds. In support of his argument, ld. advocate cited the following judgments : (1) CCE v. Lipidata Systems - 1995 (80) E.L.T. 542 (Tri.) (2) BPL Sanyo Ltd. v. CCE - 1996 (82) E.L.T. 337 (Tri.) (3) Addisons Co. Ltd. v. CCE - 1990 (48) E.L.T. 281 (Tri.) (4) Singh Alloys Steel Ltd. - 1993 (66) E.L.T. 594 (Cal.) (5) CCE v. Eastend Paper Industries - 1989 (43) E.L.T. 201 (SC) (6) CCE v. Salem Steel Plant - 1992 (61) E.L.T. 706. 4. Ld. JDR appearing for the department reiterated the beliefs expressed in the original and the appellate order. He stated that at the material time the final goods were attracting the duty at specific rates and therefore, the fact whether the value ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... those goods which were used up in the process and were therefore not visible in the end product but the use of which was essential for the completion of the manufacture of the final goods. The amendment also clubbed accessories with the inputs provided the value thereof was included in the assessable value of the final product. With this amendment most of the problems which had arisen in the admissibility of Modvat would be settled. It may not be correct to argue that by the very introduction of this amendment, those goods which were not visible in the final products or those goods which were accessories could be deemed out to be ruled out from the Modvat benefit before this amendment. The fact remains that Rule 57A which existed prior to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o have been used in completion or manufacture of the end product. This sentiment has been recorded in the judgment of the Larger Bench of the Tribunal in the case of Lipi Data Systems. In this case it was held that essentiality of accessories for the functioning of the article cannot be conclusive for deciding the admissibility of Modvat. The relative test was whether the same accessory was used in or in relation to the manufacture of final product or not. In the cited case of BPL Sanyo Ltd. also the Tribunal held that `to be an accessory of the final product is not its qualification for Modvat purpose . 7. I find that in both the lower orders, the denial is based only on the belief that the television could work without the toughened gla ..... X X X X Extracts X X X X X X X X Extracts X X X X
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