1997 (11) TMI 167

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..... t for determination in the present appeal is whether Modvat credit will be admissible on locks and padlocks provided with the transformers under Rule 57A. 2. Shri D.K. Nayyar, ld. JDR submits that the respondents herein are engaged in the manufacture of transformers and were availing credit of duty paid on inputs under the Modvat scheme. They claimed the credit of duty on padlocks and locks. The .....

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..... e of Collector of Central Excise v. Standard Alkali, reported in 1992 (59) E.L.T. 127 (Tribunal) in which this Tribunal had held that the first condition for inputs is; it must be used in or in relation to the manufacture of the final product. He submits that once this test is passed then the second test will be whether it is a specified item in the Notification issued for this purpose and then th .....

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..... hen it become an integral part of the transformers and can be termed as an input if it is so commercially supplied in all cases. However, one condition shall have to be specified before allowing the claim that the costs of padlocks and locks is included in the value of the transformers for purposes of levy of duty under the Central Excise Act, 1944. Therefore, the impugned order is being upheld. H .....

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