1998 (10) TMI 207

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..... icle is complete without these items which are not essential or integral part of the motor vehicle. According to him it is to be seen whether the finished product can be operated without these fitments and what is the contribution of these items to the manufacture of finished goods. He contended that the motor vehicle is fully manufactured even without the fitments of clock assembly, audio systems, radio etc. and these products do not contribute anything in the operation of the motor vehicle. He relied upon the decision in the case of C.C.E. v. Lipi Data Systems, Udaipur 1995 (80) E.L.T. 542 (Tribunal) in which it was held that inputs to qualify for Modvat credit under Rule 57A of the Central Excise Rules would be those which are used in or .....

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..... order and the Revenue has not preferred any appeal on this aspect. Only a very small portion of the demand is within the time limit. He submitted that the Commissioner has specifically held in Para 22 of the impugned order that for the Delux Model of the vehicle manufactured by the Respondents company, these items are absolute necessity to make them commercially viable and marketable. This observation of the Commissioner has not been reverted by the Revenue at all not even any submissions has been made in the appeal memorandum. He contended that as the absolute necessity of these products has not been disputed by the Revenue Modvat credit is available to the Respondents in respect of these products. Finally he mentioned once items are consi .....

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..... Data case relied upon by the Revenue, Tribunal allowed Modvat credit in respect of the ribbon which was fitted in the computer printer and the Modvat credit was disallowed only in respect of additional quantity of ribbon cleared with the computer printer which is not so in the case of present one. In the case of C.C.E. v. Banmore Electricals P. Ltd. - 1998 (97) E.L.T. 367 relied upon by the respondents, Tribunal allowed Modvat credit in respect of locks, padlocks provided with transformers for safeguarding the lubricant oil holding that once transformers are designed in such a way as to use padlocks and locks then it becomes integral part of the Transformers and can be termed as an input if it is so commercially supplied in all cases. 4. .....

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