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TMI Blog2003 (1) TMI 593X X X X Extracts X X X X X X X X Extracts X X X X ..... ) Ltd. 1240/CE/BPL/2000, dated 4-12-2000 2.1 Shri R.C. Sankhla, learned SDR, submitted that the Additional Commissioner had disallowed Modvat credit of the duty in respect of damaged Cathode Ray Tubes as the same were not used in or in relation to the manufacture of the final products; that the Commissioner (Appeals) has allowed the Modvat credit in terms of Rule 57D(2) of the Central Excise Rules, 1944 observing that the tubes were found damaged during testing/checking which is a part of manufacturing process and credit is not deniable on inputs contained in any waste arising during the process of manufacture. The learned SDR, further, submitted that credit of duty paid on inputs is available only when inputs are used in or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d force in the submissions of the learned SDR that once the impugned tubes have been found to be damaged or defective, the same cannot be said to have been used in or in relation to manufacture of the final products. Provisions of Rule 57D(1) of the Rules would come into play only in respect of inputs contained in any waste, refuse or by-product arising during the manufacture of the final product. Nothing has been brought on record to show that the Cathode Ray Tubes were scrapped during the process of manufacture. Accordingly we hold that the Respondents are not eligible to Modvat credit of duty paid in respect of damaged defective Cathode Ray Tubes. The Revenue s Appeals on this count is allowed. 3. The learned SDR also mentioned that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contended that as both the Respondents are using Monogram/Mark HM which is owned by a foreign company and Shri G.D. Biyani, Manager of Respondent No. 2, had deposed that their company is engaged in importing of technical know-how and guidance for manufacture of HM Models Oscilloscopes; that words HM signify as a symbol for the model in the commercial market. 4.2 The learned Advocate submitted that HM is not a Brand name and it indicates the type of Oscilloscopes; that the brand name of foreign company is HAMEG and their brand name is Scientific which is printed on their instruments. He had also produced a copy of the Certificate of Registration of Trade Marks of Federal Republic of Germany for HAMEG for measuring and monito ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts. 6. Regarding parts of Oscilloscope cleared by Ms. Scientific Mes-Tech P. Ltd. the learned Commissioner in Order-in-Appeal No. 1240-CE/BPL/2000, dated 4-12-2000 has given his findings as under :- On the issue of demand of duty on parts since the appellant is not Pressing the issue of their liability to amount of duty but has contested the rate of duty which according to them should be 5% Advl. available for SSI units instead of 15% Advl. at which it has been calculated and charged, I find that since the appellant is eligible for SSI exemption, the duty should have been calculated @ 5% Advl. which was the rate applicable at the relevant time for SSI. I hold accordingly. In the memorandum of Appeal, Revenue has only mentioned tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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