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TMI Blog1997 (4) TMI 370X X X X Extracts X X X X X X X X Extracts X X X X ..... pper which as the name indicates is a stopper and performs the function as part of a machine can be considered to be an input in terms of Rule 57A of the Central Excise Rules, 1944 for the purpose of allowing Modvat credit. 2. Shri Satnam Singh, learned Senior Departmental Representative argued in support of the reference application and stated that the Explanation to Rule 57A specifically provides that machines, machinery, apparatus, appliance, equipment for the purpose of qualifying for Modvat benefit. In the circumstances, clay graphite stopper which is used as part of the machine will be covered by the exclusion in the Explanation Clause of Rule 57A and will not be eligible for Modvat credit. The Tribunal s decision to the contrary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed by the concerned Commissioners and had allowed the same. Questions of law relating to the different appeals in question have been referred to the jurisdictional High Courts. Accordingly, the question posed by the Commissioner in the Reference Application is taken up for consideration. 5. Rule 57A, the benefit admissible under which is the issue involved in the appeal decided by the Tribunal in favour of the assessee who is the respondent in the present reference application, as it stood at the relevant period read as follows :- Applicability. - (1) The provisions of this section shall apply to such finished goods (hereinafter referred to as the final products ) as the Central Government may, by notification in the Official Gazet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the exclusion clause (i) is plain and clear, and carves out machines, machinery, plant, equipment, apparatus, tools or appliances..... . These expressions indicate a self-contained unit complete unit or whole unit but not any part thereof unless such part is also a complete unit in itself. The intention to exclude parts also along with machines, machinery and such other goods cannot be gathered from the language used nor is it spelt out by necessary implication. Applying the ratio of the aforesaid decision of the Larger Bench in the Union Carbide case the Bench held in the subject-matter that clay graphite stopper is an input intended for use in or in relation to the manufacture of the final product by the assessee and accordingly all ..... X X X X Extracts X X X X X X X X Extracts X X X X
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