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TMI Blog1997 (12) TMI 452X X X X Extracts X X X X X X X X Extracts X X X X ..... pellants manufacture hand tools. They were operating under Modvat scheme under Rule 57A. They declared Inserts and Carbide Tips as inputs for the manufacture of their final products. Inserts and Carbide Tips are ultimately fitted by a process of brazing on the hand tools and become part thereof. The Department initiated proceedings against the applicant by issue of show cause notice for denying th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner (Appeals) held that the inserts tool bits are themselves finished product and nearly 99% is cleared by the appellant as such on payment of duty. The Commissioner (Appeals) took the view that if they had been intermediate products, they would have been consumed in their entirety in the factory of the appellant itself. Since they are themselves final product and have cleared under exemption, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anufacture of the final product and that such intermediate product are exempted from duty. They have contended that this rule specifically covers their case. 3. We have heard Shri D. Gurnani, the ld. JDR. We find that the matter in such a situation is fully covered by the provisions of Rule 57D(2) which has been relied upon by the appellants. The inputs material in this case namely inserts and c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cted. We also find that the position has been clearly elucidated in the Tribunal decision in the case of Collector of Central Excise v. Indian Aluminium Co. Ltd. - 1992 (59) E.L.T. 168 (Tribunal) holding that Rule 57D(2) carves out and exception to the operation of Rule 57C, insofar as intermediate products are concerned. The two provisions should be read harmoniously, observed the Tribunal. While ..... X X X X Extracts X X X X X X X X Extracts X X X X
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