9911796707
TMI Blog1998 (12) TMI 247X X X X Extracts X X X X X X X X Extracts X X X X ..... , Ratchet wheel, Spl. part assembly, Spindle bottom parts assembly, Pneumacal filter box, Lifting lever, Lifting rod fork pin, gear wheel, MS. Rails and Spindle tape Parts of spinning frame 3. Tropudur cables Electrical cables 4. Flat Cleaning fillet Aluminium duct. Parts of carding Machines. The Assistant Commissioner by Order dated 9-5-1995 disallowed the entire credit for the reason that unspecified intermediate product namely Cotton carded/combed which attracts `Nil rate of duty emerged during the course of manufacture of cotton yarn, against which an appeal was filed. The Collector (Appeals) held that full credit has to be extended to Capital goods which are empl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Western Regional Bench has held in the case of Reliance Industries Ltd. in 1993 E.L.T. 213 followed the judgment in the case of Sandvik Asia, that item which is captively used in the final product is in the line of manufacture. Therefore, the benefit of Rule 57D would be applicable. In this matter, the credit of Rule 57S is also eligible. I, therefore, do not agree with the contentions raised by the learned DR, During the course of arguments, the assessee respondent produced an affidavit stating that cotton carded or combed is not marketed but only cotton yarn is marketed. Southern Mills Association by a certificate dated 5th December, 1995 has certified that chart carding and combing are only the intermediate preparatory processes for pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uy the product from other known sources. This evidence clearly satisfies the law as laid down in the case laws of M/s. Bhor Industries, Moti Laminates and Indian Textile Paper Tube Co., (supra). The respondents have not led any evidence to the contrary, because mere expert or technical opinion of SITRS/CEMA is superseded here by actual marketability to such an extent that two units engaged in manufacture of yarn just do not consider it necessary to instal carding/combing in-house facility. It is not disputed that carded/combed cotton is an essential stage in spinning of yarn and that yarn cannot be spun otherwise directly from cotton fibre. 15. The other argument that the same machine is used for MMF also is irrelevant as long as such use ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the respondent. The question of denial of credit regarding intermediate goods, he tried to explain to me by referring my attention to 57-Q1, 57R2. He also specifically said that intermediatory goods had been specifically mentioned in the Annexure, That is why the amendment has taken place under Notification 60/94 NT, dated 21-10-1994. 4. Lastly he mentioned the Principle of ex abudenti cortelar has to be looked into in this case which was not referred to in the judgment of the Tribunal in Singaravelar Spinning Mills Pvt. Ltd. The procedural aspect of Modvat should not be construed in such a way as to deny the substantial right of Modvat. He also stated that one-to-one correlation is not contemplated in the Modvat scheme. 5. I have c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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