9911796707
TMI Blog1990 (9) TMI 223X X X X Extracts X X X X X X X X Extracts X X X X ..... actory by paying duty at nil rate in terms of the notification. 4. The contention of the appellants regarding the benefit of Notification 95/79 as amended by Notification 58/82 in respect of synthetic rubber, carbon black and rubber processing chemical used in the manufacture of air bags/curing bags and bladders which are in turn used in the manufacture of tyres, tubes and flaps was also negatived on the ground that the notification does hot envisage grant of set-off of duty on such items. The Collector (Appeals) rejected the assessee s appeal, holding that In respect of bladders, air-bags/curing bags I cannot admit the contention of appellants that they are intermediaries. These items are manufactured in their factory mainly for the purpose of circulation of hot air in the course of manufacture of tyres. It is not a material or component part that goes into the production of final product i.e., tyres etc. The submissions of appellants that the materials are used exclusively in the manufacture of tyres, tubes, etc., are unsubstantiated in the absence of any evidence to prove that they are raw materials or inputs used in the manufacture of their end-products. In these circumstanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng/assembly department. 04. DIP UNIT: Nylon and Rayon fabrics are surface treated with latex adhesive mix, plus heat set the fabric for better stability. 05. CALENDER : Here treated nylon and rayon fabrics are coated on either side with suitable rubber compounds to make plies. This coated fabric is sent to bias cutting department, to make into plies for various sizes. 06. BEAD : In this department, high tensile steel wires are coated with rubber compound and then made into circular rings for different sizes. Then these preformed rings or beads are wrapped with coated fabric for better consolidation and then sent to tyre building. 07. TYRE BUILDING/ASSEMBLY : Here green tyres are made by assembling the various components received from other departments like treads, plies in pocket form, beads, etc., on cylindrical forms known as building drums. 08. GREEN TYRE PREPARATION : Here green tyres are painted outside with rubber solution for better moulding and inside the green tyre with lubricant for easy removal of tyres after moulding operation. 09. BLADDERS AND AIR-BAGS : The bladders butyl compoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (5) of the said Table against the said serial number: (ii) in relation to the exemption under this notification, the procedure set out in rule 56A of the aforesaid rules is followed. TABLE Sl.No. Item No.of the said First Schedule Description of inputs Item No. of the said First Schedule Description of final products (1) (2) (3) (4) (5) 1. 16 Tyres and tubes 34B Forklift trucks Platform 2. 31 Electric Storage batteries 34B Forklift trucks Platform trucks 3. 27 Aluminium 29A Refrigerating air-conditioning appliances of machinery, all sorts and parts thereof 4. 26A Copper pipes and tubes 29A Refrigerating air-conditioning appliances and machinery, all sorts and parts thereof 5. 26AA Steel Sheets and Plates 29A Refrigerating Air-conditioning apliances and machinery, all sorts and parts thereof 6. 26AA Steel sheets and strips 28A Electrical stampings laminating all sorts. 7. 28A Eletrical St ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Tariff Item 40. The learned counsel contends that the ratio of the decisions cited by him should be made applicable to this appeal. 11. As seen from the manufacturing process and flow chart submitted by the appellant, it is clear that air-bags, curing bags and bladders are used in the manufacture of the final products namely tyres and tubes. The word input has been held to be one of wide scope and not of restricted or narrow scope, and requirement of Notification 201/79 is that T.I. 68 goods which are referred to as inputs are used in the manufacture of other excisable goods. This has been the view of the Tribunal in the case of Hindustan Lever Ltd., Bombay v. C.C.E., Bombay [1985 (19) E.L.T. 96]. In the case of C.C.E., Bhuvaneswar v. Titaghur Paper Mills [1985 (21) E.L.T. 901], the Tribunal has held that there is no authority to say that an input or raw material must go directly into the finished products. As long as it is consumed and utilised in a way that results in the production or manufacture of the article on which the system is engaged, it is a raw material and is an input for that finished product for the purpose of Notification 201/79. This view has been followed by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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