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TMI Blog2001 (9) TMI 848X X X X Extracts X X X X X X X X Extracts X X X X ..... ties have considered the said items to be tools and hence covered by the exclusion clause. On the other hand the appellants contention is that the said items are attached with the drill machine and used for drilling a hole in the blast furnace. The same get consumed in the blast furnace and the same are required to be replaced by fixing to a new drill bar for the next tapping. As such the same cannot be treated as tools so as to deny them the benefit of Modvat credit. It is their contention that the goods are admittedly used in relation to the manufacture of the final product. As such they claimed for the Modvat credit under the provisions of Rule 57A as also under Rule 57H in respect of the stock lying in their factory on the date of fili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot parts of such machines, machinery, appliance, tools etc. As there is no dispute in the present case that grinding wheels in question are not such complete units which can perform functions independently, they do not come within the scope of exclusion clause contained in explanation to Rule 57A. Therefore, the only requirement to be satisfied is that they are used in or in relation to the manufacture as envisaged in the main part of Rule 57A. There is no dispute that the grinding wheels in question are parts of grinding machines and these are used for smoothening the surface of components. Therefore, they clearly perform as function in relation to the manufacture of the goods. We, therefore, hold that they are eligible for Modvat cred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and when the grinding wheels have been held to be admissible modvatable inputs in view of the Larger Bench decision referred supra, the pipes in question used with the drill bar have to be held as admissible modvatable inputs. 8. I further find that the Tribunal in the case of Steel Strips Ltd. v. CCE, Chandigarh [2000 (116) E.L.T. 86 (T)] has held the tundish nozzles used for transferring molten metal from one part to another part of the steel plant during manufacturing process of final product as eligible inputs for Modvat credit under the provisions of Rule 57A, by following the Larger Bench decision of the Tribunal in the case of Union Carbide India Ltd. [1996 (86) E.L.T. 613 (T-LB)]. Inasmuch as the present items are also parts of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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