9911796707
TMI Blog2000 (2) TMI 589X X X X Extracts X X X X X X X X Extracts X X X X ..... s denied the credit by treating the said goods as equipments/appliances/machineries, etc., falling under excluded categories of Rule 57A. 2. The appellant, in the memo of appeal, has given the processes of manufacture of Rayon yarn as under :- 2. The appellant states that for manufacture of Rayon Yarn first of all high quality Rayon Grade Wood Pulp Sheets containing about 92% to 94% of Alfa Cellulose are treated with strong caustic soda solution in a steeping press. Thereafter, the solution is drained out from the tank and the steeped sheets are pressed at about 3 times the weight of the original air dry pulp. The reaction is allowed to proceed at a controlled temperature. The combination of such cellulose present in wood pulp with alk ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the speed to the desired level so that the yarn of any particular denier can be obtained. The pump s action ensures constant and regular delivery of Viscose to the filter and Spinning jet at the exact rate required for the denier being spun. Alteration in the speed of the pump drive enables the denier to be changed. The said pump is an essential part/component of the spinning machine. (b) In the aforesaid man-made textile Encyclopaedia, in connection with the said pump, it has been stated, inter-alia, as under : The pump consists essentially of a pair of precision cut gears which rotate in a close fitting chamber formed by two side plates and a cut out center plate. Feed and delivery orifices to the gear teeth are provided in the side ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opic smooth circular holes of spinnerets are of 70 to 80 micron diameter and the number of holes is decided for the denier being spun ranging between 40 denier to 600 denier. Usually the spinnerets are of 12, 24, 40, 50, 70 and 90 holes. (b) In the aforesaid Glossary edited by American Viscose Corporation, spinneret has been defined as under : Spinneret. A metallic cap or jet with microscopic holes in the flat surface through which spinning solutions are forced emerging as fine filaments into a coagulating medium. (c) In the aforesaid man-made Textile Encyclopaedia the following passage appears in connection with Spinneret : The Spinneret. The entire synthetic fibre industry depends largely upon the spinneret as an extrusion die. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss funnel inside the pot and thereby the inner surface gets pit marks and the pot is to be replaced with a new pot as it cannot be reused or repaired. 3. Shri S.K. Bagaria, ld. advocate appearing for the appellants urged that admittedly the above items are parts of the Spinning Machine and they get damage through their use and require replacement periodically. Drawing my attention to the show cause notice, he submits that the allegations made in the notice was that the said items classified under Chapter 84 were not the consumable items in course of viscose, filament and yarn but on examinations were found either parts of machineries, appliances or equipments and therefore, not eligible for Modvat credit. He submits that when the show ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsist essentially of a pair precision cut gears holding the squeezes the viscose out to the spinneret. As such, he submits that as the items are admittedly the parts of the machineries, they would not be hit by the exclusion clause in view of the Larger Bench decision and the appellants would be entitled to the benefit of Modvat credit on the same. 4. Countering the arguments, Shri J.M. Kenedy, ld. JDR, submitted that the authorities below have held that the items in question are used for years together till they become unusable. The Assistant Commissioner has observed that spinnerets are used for indefinite period and are replaceable and got recondition for use. As such, it cannot be said that they are re-placeable spares as was the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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