9911796707
TMI Blog1997 (8) TMI 245X X X X Extracts X X X X X X X X Extracts X X X X ..... ure of Ducts, Steel Castings - HCI and CI Castings, Steel Plates and Sheets, Steel Castings Gisly Bars and Furnace Oil, Lubricating Oil and Lubricating Grease. 2. The learned lower authority has held that the benefit of the Modvat credit either under Rule 57A or Rule 57Q as the case may be, as claimed by the appellants is not available. The learned lower authority has recorded his findings in respect of each of the items separately. 3. The learned Advocate has adduced his arguments in respect of the goods in question as under : (i) Hydraulic Excavator The learned Advocate has pleaded that the same is used in the mine which is adjacent to the factory for mining the limestone which is ultimately loaded on the dumpers and br ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of these goods is being carried on or is or ordinarily carried on; He has highlighted that the definition included not only the place where the goods which are manufactured but also the precincts thereof, where a manufacturing activity is carried out. He has pleaded that the mining of the limestone should be taken to be a manufacturing activity and, therefore, the extended definition of factory should be applied for the purpose of giving the benefit under Rule 57A. 4. The learned SDR for the department has pleaded that the excavator, dumper are used for the mining activity, and transport of the limestone from outside the factory. He has pleaded that the activity carried out, therefore, can be only considered to be in relation to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the cement will alone be taken to be covered under the definition of cement. For that purpose, we have to consider as to where the manufacturing process starts and where it ends. The manufacture of the cement can be taken to start only at the stage where the raw materials which are brought in within the factory or taken in for processing are stored and thereafter rendered usable for the manufacture of the cement. That would mean, the process will start from the end at the stage where the limestone has entered the cement factory and is taken up for crushing for desired use in the cement mill. In our view, therefore, the process of mining carried out could not be taken be encompassed or for the manufacture of cement. Since the question of Mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... regard to the Furnace Oil, the lower authority has rejected the appellants request for the reason as the same could not be considered as an input at the relevant time as it was not notified so under Rule 57A. The learned Advocate has pleaded that it did figure under Rule 57A, but its use for electricity purpose was not notified under the said rule. In this connection we have referred to the learned Advocate in our decision in the case of Ferro Alloys reported in 1997 (70) ECR 841, in that case we have held that unless it could be shown any portion in respect of the input is used is integral to the process of manufacture of the notified finished product, the benefit of Modvat credit could not be given. Following the various judgments of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f electricity cannot be taken to be part of the set up for processes for the manufacture of ferro alloys, the question of extending the benefit in respect of fuel oil for generation of electricity does not arise." The learned Advocate informed that LHS oil is used for generation of electricity in the stand-by generator. We observe, stand-by generator cannot be taken to be integral to the process of manufacture as such, as a normal mode of supply is the power supply from the Electricity Board. Following the ratio of our decision above, we, therefore, hold that the appellants are not entitled to the benefit of Modvat credit in respect of the same. 10. In regard to the Lubricating oil, the use of the same has not been brought on record, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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