9911796707
TMI Blog1998 (4) TMI 370X X X X Extracts X X X X X X X X Extracts X X X X ..... ives :- The Explosives viz. Safety Fuses, Detonating Fuses, Denoting Caps, Igniters are used for blasting in the lime stone mines situated one to five kilometres away from the cement factory. The Explosives are used in the mines governed under the Mines Act, in relation to mining of limestone and not in the factory. The Central Excise Act and Rules made thereunder are applicable to the area registered as factory with the Central Excise department. The term factory in terms of Rule 174 of the Central Excise Rules is defined under Section 2(e) of the Central Excise Act which reads as under :- Factory means any premises, including the precincts thereof where is or in any part of which excisable goods other than the salt are manufactured, or wherein or in any part of which any manufacturing process connected with the production of these goods is being carried on or is ordinarily carried on . A careful scrutiny of the definition of factory under the Central Excise Act would indicate that premises which includes the precincts where excisable goods are manufactured or wherein any process connected with the production of these goods is carried out would be considered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Grinding Media (Steel Balls) and Cylpebs could be considered as an input in relation to manufacture of cement or not eligible for Modvat under Rule 57A of the Central Excise Rules. (c) Refractories (Fire Bricks) and Refractory Cement :- (i) Refractories (Fire Bricks) are used as lining in the Kiln. These Refractories (Fire Bricks) are fixed together and laid in the Kiln with the help of Refractory Cement. Kiln is a capital goods which falls in the category of machines, machinery, plant which are excluded from the ambit of the definition of inputs as provided under Rule 57A of the Central Excise Rules. The Kiln is not complete until and unless it is lined with Refractory Bricks with the help of Refractory Cement to act as an insulation to preserve the heat within the Kiln and also to protect the shell of the Kiln. Refractories after specified intervals require replacement and the Kiln is relined with fresh Refractory (Fire Bricks) with the help of Refractory Cement. (ii) The facts as aforesaid therefore indicate that Refractories (Fire Bricks) and the Refractory Cement are used for lining the Kiln to keep it functional. It can, therefore be said that it constitute a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bearing :- (i) Ball Bearing by its very nature are component, parts of various machines which are used for either reducing the friction and or to provide for a rotary movement to various motors and similar machines, machinery. They can be input for machines but not input in relation to manufacture of cement. The Ball Bearing , therefore, fall in the exclusion category of explanation to Rule 57A which defines the meaning and scope of word inputs . The Ball Bearing , therefore, fall within the category of capital goods and cannot be considered as input used in relation to manufacture of Clinker or Cement in terms of definition of inputs provided under Rule 57A of the Central Excise Rules. (ii) Besides, in case of A.C.C. Limited v. Collector of Central Excise [1991 (55) E.L.T. 955], CEGAT has held that Modvat credit on Ball Bearing has already been held as inadmissible under Rule 57A of the Central Excise Rules. (iii) Therefore, a question of law arises whether Ball Bearings which are parts and components of various machines could be considered as inputs eligible for the benefit of Modvat credit in terms of Rule 57A of the Central Excise Rules. (f) Electrodes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rubber are nothing Conveyor Belt made of rubber and classified under Chapter Heading No. 4010.90 of Central Excise Tariff. The Conveyor Belt are used for carrying load from one place to another and is a component, accessory of material handling system. (ii) Thus, these Conveyor Belt are not used in the manufacture of final products, hut arc used in relation to material handling purpose. (iii) The Conveyor Belt made of rubber are covered by the exclusions in the explanation of Rule 57A of the Central Excise. It is for this reason that later such material handling equipments/systems (Heading 8428 of Central Excise Tariff) and components, spares and accessories of such material handling system were allowed Modvat as capital goods by amending explanation to Rule 57Q of the Central Excise Rules by Notification No. 71/95 (N.T.), dated 16-3-1995. The Conveyor Belt, therefore are inputs under Rule 57A of the Central Excise Rules for Clinker and Cement . (iv) Therefore, a question of law arises whether Conveyor Belt made of rubber being a component/accessory of Conveyor system could he considered as an input under Rule 57A of the Central Excise Rules in relation to manufa ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
