9911796707
TMI Blog1999 (6) TMI 221X X X X Extracts X X X X X X X X Extracts X X X X ..... es 1944. Both items form the subject matter of appeal No.E/3082/98-NB while the subject matter of appeal No.E/3083/98-NB is only TEG. 2. The appellants are represented by Shri Bipin Garg, learned Advocate who contends that TEG is used to clear the filter through which polyester film melt is filtered during the process of conversion of melt polymer, as TEG has properties to dissolve in polyester polymer and clear the dust and TEG is, therefore, essential for the process of manufacture. They contend that Tungsten wire is used to ionise the air between "chill roll" and molten polymer and gives a sticky action to the chill roll and if it is not used molten polymer cannot be properly cast and polyester film cannot be stretched on Machine D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sible on TEG. Regarding tungsten wire, he submits that it is in the nature of an accessory/appliance of the machine and, therefore, hit by the exclusion clause in Rule 57A. 4. I find that in the case of J.K. Synthetics cited supra, the Bench has relied upon the Larger Bench in the case of Sri Ramakrishna Steel Industries Ltd. v. Collector of Central Excise, Madras reported in 1996 (82) E.L.T. 575, for the purpose of holding that TEG used for cleaning filters is an input entitled to Modvat credit under Rule 57A, since the cleaning process is an essential step in the process of manufacture and is connected with it. The relevant extract from J.K. Synthetics is reproduced below : 4. I have considered the submissions made by both the side ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 'in relation to the manufacture' are intended to set at rest all doubts. Where raw material is actually used in the main stream of manufacture of final product that is, actually used in the physical or chemical process of manufacture, it is certainly an input used in the manufacture of final product. The doubt may arise only in regard to use of some article not in the main stream of the manufacturing process but in another stream of manufacturing something which is to be used for rendering final product marketable or used otherwise in assisting the process of manufacture. Such doubt is set at rest by use of the words 'used in relation to the maufacture'. It is ture that sand mould is not a raw material actually used in the manufacturing pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tungsten wire, I find that in the case of ECE Industries reported in 1998 (97) E.L.T. 146, the Tribunal has held that molybdenum wire used in the manufacture of tungsten filament is eligible for Modvat credit and does not fall under the excluded category as tool or appliance. In coming to its conclusion, the Tribunal relied upon its decision in the case of Collector of Central Excise v. Kalpana Lamps and Components Ltd. reported in 1997 (91) E.L.T. 162 which in turn relies upon the decision of the Larger Bench of the Tribunal in the case of 'Union Carbide India Ltd. v. Collector of Central Excise, Calcutta. In the Kalpana Components case, the Tribunal held that the term "tool" could not cover wire as it is used. Tungsten wire will also not ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
