2000 (1) TMI 423

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... . The departrnent has preferred these appeals against the above captioned impugned order dated 24-5-1994 praying for setting aside the same. The facts of the case are that the respondents are engaged in the manufacture of investment castings of different varieties falling under Chapters 73, 84 to 87 of the Central Excise Tariff Act and availing Modvat credit facility. They filed declarations .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... are used for the manufacture of sand mould, patterns and not for final products, namely investment castings of different varieties. The inputs are used for making patterns/binder for shell mould/mould and are not used in the manufacture of final products. The mould/pattern are in the nature of equipments and are not direct or indirect raw materials/inputs for cast products. The inputs used for the .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... final product, Modvat credit admissible in respect of duty paid on chemicals or resin used in the preparation of sand moulds in the process of manufacturing final product, steel, castings. (Vide paras 14 16). On going through this decision it is seen that this case squarely covers the present case in hand in view of the observation made in para 14 of the orders of the Larger Bench as follows : .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ng the process of manufacture. Such doubt is set at rest by use of the words "used in relation to the manufacture". It is true that sand mould is not a raw material actually used in the manufacturing process of final product in the sense that when mixed with some other articles it would produce the final product. Sand mould is also not used in the preparation of some other article which is necessa .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ontention of the JDR that no credit is allowed as the inputs are not used in the manufacture of the final product cannot be accepted as the manufacture of final product is continuing process from the stage of manufacturing of mould from the inputs which pass through the mould to the final product, and they are used in relation to the manufacture of final product. So in view of this conclusion, app .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X