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TMI Blog2000 (10) TMI 387X X X X Extracts X X X X X X X X Extracts X X X X ..... he case giving rise to the above contention are that the respondents are engaged in the manufacture of motor vehicles and supplied tool kits and jack assembly with motor vehicles. They supplied tool kits and jack assembly alongwith the motor vehicles. The Asstt. Commissioner held that Modvat credit was not available on tool kits and jack assembly supplied with motor vehicles. He accordingly confirmed the demand. Against this order, the respondents filed an appeal before the Commissioner (Appeals) who held that tool kits and jack assembly are essential constituents to make the motor vehicles marketable and set aside the order of the Asstt. Commissioner. The Revenue has filed an appeal before the Tribunal. The Tribunal in para 5 of its impugn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssemblies and tool kits supplied along with the motor vehicles are inputs as contemplated in Rule 57A of the Central Excise Rules, 1944 and not excluded by Clause 1A of the Explanation to that Rule. He submits that for coming to this decision, the Larger Bench had before it the decision of the Hon ble Patna High Court and various other decisions. He, therefore, submits that since the issue has been decided by the Larger Bench of this Tribunal after taking into consideration the decision of the Hon ble Patna High Court, no point of law arises. He, therefore, prays that reference application may be rejected. 5. Heard the rival submissions. I note that the Larger Bench of this Tribunal in the case of Bajaj Auto Limited cited above had no dou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tna in TELCO v. Union of India - 1994 (72) E.L.T. 325 (Pat.). Appellants, manufacturers of motor vehicle chassis, were purchasing tool kits comprising of spanners, wrenches, screwdrivers and jack attachments and supplying the same to buyers of chassis at their option. They were adding the value of tool kit in the assessable value of chassis and paying duty thereon. The question directly arose as to whether appellants were entitled to Modvat credit in respect of such tool kits. The Tribunal in the decision reported in 1991 (32) ECR 165 (Tri.) held that TELCO were entitled to Modvat credit, mainly on the basis of trade notices. Thereafter CBEC on 21-10-1991 withdrew the earlier instructions. Thereupon Assistant Collector issued notice and sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent action to the manufacture of chassis to be used in relation to maintenance and repair of chassis and not used in relation to manufacture of chassis. It was opined that value of accessories and spares should be added to the value of chassis as they contribute to the value of chassis and not because tool kits are used in or in relation to the manufacture of chassis. The Court also observed that unlike wiper machine or seat which are essential parts of chassis, tool kit cannot be said to be essential component of chassis since it is supplied only on request of customers and hence it is clear that chassis is marketed without the help and assistance of the tool kit. Thus, it was held that the ratio of Jay Engineering case was not applicable. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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