9911796707
TMI Blog1998 (1) TMI 172X X X X Extracts X X X X X X X X Extracts X X X X ..... be reversed by making entries in R.T. 12 returns without issue of show cause notice. The issue is again the same against the findings of the lower authorities. The appellants have preferred these appeals before us. 2. The facts of the case briefly stated are that the appellants are engaged in the manufacture of bi-metal bearings. For this purpose, they purchased various items from the market after payment of duty and took Modvat credit of duty paid on these items. In the process of manufacture of bi-metal bearings, two intermediate products came into existence. The first intermediate product is Copper Powder and the second intermediate product is bi-metal strips . Actually in the process of manufacture, copper powder is coated and sint ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... where more than one intermediate product arises during the course of manufacture of a final product in a factory and such intermediate products are exempted under Notification 217/86 dated 2-4-1986. Credit taken on inputs is permitted provided that such intermediate products are those as contained in the table of Notification No. 217/86, dated 2-4-1986. Ld. Counsel submits that their case is fully covered by this clarification given by the Central Board of Excise Customs in as much as two intermediate products came into existence in their case; that these intermediate products are covered by Col. 2 of the table annexed to Notification No. 217/86-C.E. He submits that these intermediate products are used in the manufacture of final product ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the stipulation of the notification is that the input will be exempted provided duty was paid on the final products. His emphasis was that copper cannot be considered as an exempt input under Notification 217/86 in as much as bi-metal strips which is the final product for copper powder does not pay duty. His main argument was that copper powder by itself is an excisable commodity. Bi-metal strips is also an excisable commodity and if bi-metal strips is taken as an exempt item then Notification 217/86 will not be applicable to exemption of copper powder. On the question of clarification given by the Central Board of Excise Customs, ld. DR submits that clarification is given in the context of Modvat credit and that in the instant case, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dity and if it is considered as an input for manufacture of bi-metal strips and since bi-metal strips are exempted under Notification 217/86 then the benefit of Notification 217/86 will not be applicable to copper powder. We note that in a process of manufacture, we have to see what is the input and what is the final product. No doubt copper powder and bi-metal strips are identifiable excisable products but the fact remained that the appellants are engaged in the manufacture of bi-metal bearings and therefore, bi-metal bearings is the final product and all other items which come into existence at the intermediate stage will be inputs. Therefore, for reading the notification harmoniously, we hold that copper powder and bi-metal strips are bo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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