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TMI Blog1997 (12) TMI 288X X X X Extracts X X X X X X X X Extracts X X X X ..... input for Modvat credit is an issue to be considered in this case. 2. Modvat credit has been denied by the Assistant Collector on the ground that an item to be eligible for availing Modvat credit it should satisfy three conditions namely, (1) it should be an input, (2) input is used in or in relation to the manufacture of the final products and (3) both the items claimed as input and the final p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned, we find that they are containers to hold molten metal. we have consulted the Second Edition of McGraw-Hill Dictionary of Scientific and Technical Terms. We find that it is in the form of a Utensil, may be of larger size. It is not in the form of a machine/equipment etc. which are covered by the exclusion clause in the explanation to Rule 57A. Having regard to this view, we hold that Modvat c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in the case of Indian Farmers Fertilizers Cooperative Ltd. v. C.C.E., Ahmedabad reported in 1996 (86) E.L.T. 177 in support of his contention. 7. I have carefully considered the submissions made by both sides and perused the records. In the reply to the show cause notice, the party has mentioned that crucible is not an [appliance] and is an input essentially required for the manufacture o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elting or heating solid substances to high temperatures. Hence in the facts and circumstances, it is not in dispute that item as such was not used in the process of manufacture of the finished product. The Assistant Collector also has given a categorical finding that it is an input. While interpreting the exemption Notification 187/61, whether raw naphtha used in the manufacture of ammonia which i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufacture of goods." Further in the case of J.K. Cotton Spinning and Weaving Mills Co. Ltd. v. STO, Kanpur and Others, the Supreme Court observed that the expression in the manufacture takes in within its compass all processes which are directly related to the actual production. In view of the observations made by the Supreme Court in the case referred to above and in view of the clear finding by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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