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TMI Blog2019 (12) TMI 787X X X X Extracts X X X X X X X X Extracts X X X X ..... 615 of 2018 - FO/76554/2019 - Dated:- 14-11-2019 - HON BLE MR. P.K. CHOUDHARY, MEMBER (JUDICIAL) Shri S. P. Siddhanta, Consultant for the Appellant Shri S. S. Chattopadhyay, Authorized Representative for the Respondent ORDER PER P.K. CHOUDHARY: Heard both sides and perused the appeal records. 2. Brief facts of the case are that the appellant is engaged in the manufacture of coil spring ERC classifiable under Chapter 73 of the First Schedule to the Central Excise Tariff Act, 1985. Show Cause Notice was issued for the period July 2007 to January 2011 alleging irregular availment of Cenvat Credit against grinding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r availing Modvat credit under Rule 57-A of the C. Ex. Rules, 1944 when such machines, machinery, pant equipment, apparatus, tools of appliances etc. have been specifically excluded from such eligibility in terms of the Explanation under the same very Rule. The Hon ble High Court has answered this question in favour of assessee. The relevant paragraphs are reproduced for ready reference. 9. The question referred to this Court is required to be considered and answered in light of the provisions contained in Rule-57A of the Central Excise Rules, 1944. This rule deals with the applicability of the Modvat scheme. According to this rule credit of Central Excise Duty is available in respect of Central Excise Duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are not only goods used in relation to the manufacture of final products. The Tribunal in that case held that felts, Phosphor Bronze, Stainless Steel Wire Cloth, Wire Mesh and Dandy cloth used as parts in machine or machinery in the manufacture of paper and paper products are eligible inputs and are not excluded by virtue of exclusion clause (i) of Explanation to Rule- 57A of Central Excise Rules, 1944. The Tribunal further held that copper wire used in welding process in the manufacture of metal containers and ending up as waste because of small particles of tin deposits thereon, is an eligible input. The Tribunal, therefore, took the view that copper wire is used in relation to manufacture of metal container, since without use of the copp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lly connected with the operation which results in the emergence of manufactured goods, would come within the term manufacture . Since electricity was self-generated and since it came into existence as an intermediary product, its utilization for production of final product was crucial and hence Modvat credit on LSHS used in production of electricity could not be denied. 13. Applying the above test laid down by the Tribunals as well as the Apex Court to the facts of the present case it can certainly be said that the grinding wheels are definitely parts of the grinding machine used by the respondent assessee and they have to be considered as inputs under Rule-57A of the Central Excise Rules. The question referred to this Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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