2000 (9) TMI 378

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..... Shah, Advocates, for the Appellant. Shri B.B. Sarkar, JDR, for the Respondent. [Order per : G.N. Srinivasan, Member (J)]. - This is an appeal filed against the decision of the Commissioner of Central Excise, Mumbai-VI made in Order No. 33/99-Commr-VI, dated 2-11-1999 whereunder he has held that the steam has been termed as tool which comes under the exclusion, for the purpose of claiming Modv .....

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..... para 33 of the order that the department's allegation is that when fuel gas was used for heating/boiling, the water got converted into steam and this process brings change in the state of water from liquid to gaseous state hence the fuel gas a means/tools for manufacturing steam, and since tool is excluded from the scope of inputs under Notification No. 217/86 exemption under this notification Mod .....

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..... d Counsel explained to us as to the meaning of the term "tools" as indicated in the judgment of the Tribunal in the Larger Bench in the case of Union Carbide India Limited v. CCE - 1996 (86) E.L.T. 613 (Tribunal) (at pages 626 - 628). He said that it is preposterous on the part of the adjudicating authority to hold fuel gas as a tool. He explained to us the meanings given by various dictionaries a .....

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..... nbelow : "(i) The New Shorter Oxford Dictionary, Tool : A thing used to apply manual force to an object a material, esp a device designated for some particular mechanical function in a manual activity, as a hammer, a saw, a fork; and implement. Now also, it powered machine used for similar purpose. A weapon; the blade of a knife; a small stamp or roller used for impressing and ornamental design o .....

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..... CE, the term tool is expected to mean that the same is used several times. The fuel gas is not used several times here. The simple ipsi dixit of the adjudicating authority cannot make a fuel gas a tool. The reasoning of the adjudicating authority according to us is really frivolous to say the least. We are of the view that following the judgment of the Larger Bench in the above case and the meanin .....

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