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TMI Blog2002 (3) TMI 643X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the respective appeals by the Commissioner (Appeals) and has discussed in detail as to how these items are being used in the manufacture of final product. 2. E/520/2000/MAS In Order-in-Appeal No. 12/2000, dt. 21-1-2000 the Commissioner (Appeals) has dealt with Whytheat, seal kit and varimax motorised gear box, bevel pinion shaft and gear wheel belt scrapper and spill stop, thyrister type ET 240 and coil. The Commissioner has noted that these items are used in the second stage of manufacturing process. The first being in the crushing of the limestone boulders (raw material) which is transferred to the stacker reclaimer wherein the limestone powder is mixed homogeneously and that the mixing of raw material is part of the manufacturin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed in the machinery and are involved in the manufacturing activity. He has noted that no single part of the machine can do the function of the manufacturing activity without the support of the other parts. After due examination and after noticing, the functioning of each of the items, he has held it to be part and parcel of the capital goods and within the definition of machine and has upheld the asseesee s prayer for grant of Modvat credit in the light of the Tribunal s decision rendered in the case of Nav Bharat Paper Mills and M/s. M.M. Forgings, L T Ltd. 4. E/522/2000/MAS In Order-in-appeal No. 15/2000, dt. 27-1-2000 the Commissioner has examined the eligibility of the claim for Modvat credit as capital goods in respect of Digital ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t rejected the Revenue s Appeal and upheld the Tribunal decision as reported in 2001 (132) E.L.T. 3 (S.C.). The Hon ble Apex Court has also laid down the ratio that once the item is utilised in the course of the manufacture, then the credit is required to be granted. It has held the grant of Modvat credit in respect of wires and cables and as such other items as are present in these cases. Further I notice that the Apex Court ruling in the case of Jaypee Rewa Cements v. CCE reported in 2001 (133) E.L.T. 3 (S.C.) has also held that the explosives used for in the manufacture of intermediate product namely lime- stone are in turn used in the manufacture of cement was eligible for Modvat credit in terms of Rule 57A of the CE Rules. The Apex Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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