9911796707
TMI Blog1998 (11) TMI 561X X X X Extracts X X X X X X X X Extracts X X X X ..... Varnish falling under sub-heading 3208.40. They have declared the inputs used in the above final products for availing Modvat credit on the duty paid on the inputs. They are also manufacturing Thinners falling under sub-heading 3814.00 without aid of power on which they avail exemption under Notification No. 230/86, dated 1-3-1986. The appellants have declared Phenol as one of the inputs used in the manufacture of Insulating Varnishes. A part quantity of Phenol is used in the manufacture of Thinner which is used in the Insulated Varnish for adjusting viscosity, and Insulating varnish is cleared on payment of duty for captive consumption, i.e. for insulating the winding wires of copper which is cleared on payment of duty as well as at nil r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -D and notification relied on. They are considered in the below paras. 4. Point for consideration is whether there are sufficient and satisfactory grounds to allow the appeal? My finding there on is in the Negative. 5. From the records, it is seen that the only controversy in this matter is Thinner used for adjusting viscosity of insulating varnish is an intermediate product of insulating varnish or not. To find out, what is the intermediate product is to be seen. It is the one which comes into existence in the manufacturing of a product i.e. a necessary evil, coming into existence at intermediate stage during the manufacturing process of a final product. Process involving the intermediate product is a part of the whole integrated proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the manufacture of varnish and copper winding rods as one of the inputs. Duty liability is admited on Phenol, used in the manufacturing thinner cleared at site without duty, and also which is used in the manufacture of thinner, utilised at Enamelling stage of winding wires made of copper cleared under nil rate of duty under Notification No. 69/86 dated 10-2-1986. But they have claimed Modvat credit on Thinner used in the manufacture of copper winding rods, which is cleared on payment of duty under notification referred above, which is eligible for exemption under Rule 57-D(2) of Central Excise Rules, Rule 57-D(2) reads that credit of specified duty allowed in respect of any inputs shall not be denied or varied on the ground that any in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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