9911796707
TMI Blog1997 (4) TMI 285X X X X Extracts X X X X X X X X Extracts X X X X ..... r consideration :- (a) Whether in the light of the above discussion, the said products can be treated as input" in terms of Rule 57A read with exclusion clause (i) of the Explanation read with Rule 57G of Central Excise Rules, 1944. (b) Whether the said product fulfils the description given under explanation 57A." 3. Manufacturer claimed Modavt credit in respect of duty paid on the inputs, namely, Dryer Press Felt and Phosphor Bronze Metal wire. The claim was rejected by the jurisdictional Assistant Commissioner holding that these inputs are excluded from the purview of Rule 57A of the Rules by virtue of exclusion clause (i) to the Explanation to the Rule and this order having been confirmed by the Collector (Appeals), the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of this section and the conditions and instructions that may be specified in the notification. * * * * * * * * * Explanation - For the purpose of this rule, inputs include - (a) * * * * * * * * * (b) * * * * * * * * * but does not include - (i) machines, machinery, plant, equipment, apparatus, tools or appliances used for producing or processing of any goods or for bringing about any change in any substance in or in relation to the manufacture of final products; * * * * * * * * * 5. The Tribunal held, on a consideration of decisions of Supreme Court, of High Courts of Calcutta and Madras and of the Tribunal, that the words in Rule 57A used in relation to the manufacture widen t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch machines. 7. The use of these goods was found to be the following :- Pulp with excess water comes from the pulp making machine to the paper-making machine. Pulp is allowed to fall on Phosphor the wire mesh and web of pulp fibre is formed. It moves on moving wire mesh and is allowed to fall on felt. The moving felt carries the pulp web to the drier and is calendered or pressed being wound on rolls and treated further. Wet paper is passed between Dandy rolls covered with Dandy cover so as to smoothen the surface of the paper. These articles are damaged in the process and require replacement periodically. 8. The Tribunal considered the scope and meaning of machine , machinery and other articles referred to in exclusion clause (i) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quires reference to the High Court :- Whether the Appellate Tribunal after having found that Dryer Press Felt, Phosphor Bronze Metallic Wire and Metallic Wire (cloth) are parts of machine and used in relation to the manufacture of specified final products, is correct in holding that these parts of machine are not excluded from the definition of input by exclusion clause (i) of the Explanation to Rule 57A of the Central Excise Rules, 1944 and if so, is correct in holding that the assessee is entitled to Modvat credit in respect of duty of Central Excise paid on such goods? 11. A statement of case shall be drawn up in this case and reference made to the High Court of Bombay. 12. The reference applications are disposed of accordingly. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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