9911796707
TMI Blog2006 (2) TMI 542X X X X Extracts X X X X X X X X Extracts X X X X ..... 2000 (5) TMI 64 - CEGAT, NEW DELHI] , holds that lubricating oils and greases used for the purpose of lubricating the machines and machinery is to be taken as a process for the manufacture of final product, as it is essential for their working and integrally connected with the manufacture. In the result, applying the ratio of the Punjab Haryana High Court judgment noted supra, which in turn refers to two Supreme Court judgments, and by following the ratio of the Larger Bench judgments rendered in Modi Rubber Ltd. and Union Carbide Ltd. [ 1996 (6) TMI 308 - CEGAT, NEW DELHI-LB] , the appellant s plea is required to be accepted. The inputs viz. Welding Electrodes, Oxygen Gas and Acetylene Gas used for welding the punctured pipes carrying the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his process is not a maintenance work but essential for the manufacture of final products. The Supreme Court judgments rendered in the cases of CCE, Calcutta v. Eastend Paper Industries Ltd. - 1989 (43) E.L.T. 201 (S.C.) - AIR 1990 SC 1893 and Collector v. Ballarpur Industries Ltd. - 1989 (43) E.L.T. 804 (S.C.) and Patna High Court judgment rendered in the case of Tata Engineering Locomotive Company Ltd. - 1999 (111) E.L.T. 9 (Pat.) - 1999 (31) RLT 800 (Patna) has also been referred. He submitted that in view of these judgments, denial of Modvat credit is not justified and prays for allowing the appeal in terms of the judgment rendered in the case of India Sugars Refineries Ltd. 2. The learned SDR relies heavily on the findings given by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the machinery of the assesses are lubricated with the lubricants, heat will be generated on account of mechanical friction between the working surfaces of the machinery leading to adverse consequences affecting the process of manufacture. On that premise, they held that lubrication of the machines and machinery is essential for their working and, for that matter, for the smooth process of manufacture of final products. It has been held that lubrication of the machinery is an activity which is concerned with or pertaining to the manufacture of the finished products. It has further been held that it is rather integrally connected with the manufacture and that the use of lubricants in the machinery is certainly in or in relation to the manufa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... maintenance and overhauling of the machinery is necessary. It is an integral part in the process of production. Similar question came up for adjudication before their Lordships of the Apex Court in Collector of Central Excise, Calcutta-ll v. M/s. Eastend Paper Industries Ltd., AIR 1990 SC 1893, where it was held Where any particular process .... is so integrally connected with the ultimate production of goods that, but for that process, manufacture or processing of goods would be commercially inexpedient, articles required in that process, would fall within the expression in the manufacture of goods . Similar question also arose in Indian Farmers Fertilizer Co-operative Ltd. v. Collector of Central Excise, Ahmedabad AIR 1996 Supreme Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n limine. 5. As can be seen from the above finding that for the effective running of any Plant, maintenance and overhauling of the machinery is necessary and it is an integral part in the process of manufacture. The Punjab Haryana High Court has referred to earlier two Supreme Court judgments (i) CCE v. Eastend Paper Industries Ltd. and (ii) Indian Farmers Fertilizers Cooperative Ltd. v. CCE. The ratio of the Punjab Haryana High Court, and the other two Supreme Court judgments noted therein, have not been referred to by the Larger Bench in the case of Jaypee Rewa Plant. Thus the findings rendered in the case of Jaypee Rewa Plant, denying the benefit of Modvat in respect of welding electrodes and Gases, is contra to the judgments rendered by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ectly or indirectly into the finished product but are used in any activity concerned with or pertaining to the manufacture of final goods. On the premise of this reasoning, the Larger Bench has held that Copper Wire used in welding process in the manufacture of metal containers should be considered as an eligible input and not to be treated as a tool, machinery or appliance. Therefore, the Larger Bench ruling of Union Carbide India Ltd. and the Larger Bench judgment rendered in the case of Modi Rubber Ltd. having been rendered in the light of the Apex Court judgment and the definition of the term Input and the ratio of these rulings clearly overrules the Larger Bench judgment of Jaypee Rewa Plant. In the result, applying the ratio of the Pu ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
