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TMI Blog1996 (8) TMI 310X X X X Extracts X X X X X X X X Extracts X X X X ..... er MOD-III, New Delhi holding that Photomasks, Fused Quartzware, Graphite Jigs are not eligible for Modvat credit under Rule 57A of the Central Excise Rules, 1944 in the manufacture of the final products of the appellants namely Transistors and Diodes. In the adjudication order passed by the Commissioner of Central Excise, New Delhi he had confirmed the demand for Rs. 3,26,375.82 and had imposed a penalty of Rs. 50,000/- on the appellants. Period of demand on all the inputs is from 12-6-1988 to 19-1-1990, in the case of photomasks from 22-10-1988 to 31-1-1990. In the case of Graphite Jigs from 22-10-1988 to 31-1-1990 and in the case of Fused Quartzware is form 31-3-1989 to 15-3-1990. The case of the department is that in their declaration u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the demand confirmed by the Commissioner of Central Excise for Rs. 3,26,375.82 is barred by limitation being beyond six months time limit under Rule 57-I Central Excise Rules from the date of show cause notice issued by the Commissioner which was on 7-4-1993 and the period in dispute being between June, 1988 to March, 1990. The learned Counsel submitted that the same issue had been the subject matter of order of adjudication by the Assistant Collector which has resulted in the other connected appeal. There is yet another show cause notice which was issued to them in January, 1991 resulting in an Assistant Collector order relating to fused quartzware in Appeal No. E/440/92-NRB which is also before the Tribunal. Therefore, it is not as i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce and are exposed to very high temperature. In the furnace number of chemicals alongwith nitrogen and oxygen gases are used for the dopping/diffusion process within the pattern which have transferred on to the silicon chips absorbed the diffusion chemical in the area under the pattern. 7. The learned Counsel Shri Madhav Rao contended that the photomask as called above is intergrily connected with the manufacturing process resulting in the emergence of the final product. Therefore, it should be considered eligible input for which he cited case law included the Larger Bench decision reported in 1996 (82) E.L.T. 575 in the case of Ramakrishna Steel Industries v. Collector of Central Excise wherein sand moulds and chemicals used in their pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p for consideration in the Tribunal which held in its decision reported in 1996 (83) E.L.T. 120 (Tribunal) in the case of Continental Devices (I) Ltd. v. Collector of Central Excise, New Delhi that the goods would merit consideration as appliance as one of its functions is to convert the electrical energy into the heat required for the fusion of the leads to the capsule, forming the complete diode. The Tribunal observed that a Jig is defined in the McGraw Hill Dictionary of Scientific and Technical Terms as a device used to position and hold the apparatus from the machinery operating and to guide the cutting tool. The Tribunal in giving this decision had considered the detailed Explanation given by the learned Counsel regarding the functi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able nature of otherwise of the inputs were not the conclusive factors, held the Tribunal, in determining admissibility to Rule 57A. It may further be noted that the Larger Bench in the case of Union Carbide India Ltd. Ors v. Collector of Central Excise, Calcutta-I Ors., reported in 1996 (88) E.L.T. 613 (Tribunal) = 1996 (15) RLT 144 has considered the scope of the excluded item under Rule 57A. It is observed that almost all the expression used in the exclusion namely, machine, machinery, apparatus, plant and tool, equipment or appliances relate to full and complete assemblages which could be described as such. The common factor is the self contained and complete nature of the goods comprehended by these words. These have to be understo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rule 57A of an input used in relation to the manufacture of the final product. The orders of the lower authorities denying Modvat credit on photomask is, therefore, not justified and is set aside. 12. There is, however, a lot of force in the appellants plea that the demand for duty as contained in the adjudication order of the Commissioner of Central Excise, New Delhi is hit by limitation, having regard to the fact that show cause notice was issued in 1993, on 7-4-1993 which was beyond six months period. Show cause notice had been issued earlier also to the appellants in January, 1991 in relation to the fused quartzware and graphite jigs. The demands had been confirmed resulting in appeal before the Tribunal. All these would show that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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