9911796707
TMI Blog1993 (7) TMI 365X X X X Extracts X X X X X X X X Extracts X X X X ..... the structure of the diesel generators manufactured by them. The disputed inputs, namely. Control Panel and Circuit Breakers are actually component parts of the generators, it was contended. Though these items are procured by them from other manufacturers/suppliers, that does not mean that they are not component parts of their final products. Without these items, the generators cannot be put to use and they are essential for their functioning. They enter into contracts with their customers who include a number of Government Departments and in terms of such contracts they are required to supply the generators complete with control panels and circuit breakers. The price of the diesel generating sets include the cost of such Control Panel and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssistant Collector which have been upheld by the Collector of Central Excise (Appeals) in his impugned Order-in-Appeal. He generally supported the impugned order. 4. I have considered the submissions. I have also perused the relevant papers. The Assistant Collector has held that irrespective of the function performed by inputs in the diesel generating set and however essential it might be for the same, this cannot be said to be used in or in relation to the manufacture of the generating sets as required under Rule 57A of the Central Excise Rules 1944 and accordingly not treatable as inputs under the said rule. This finding is totally untenable. It had been submitted before the authorities below and reiterated in the present Appeal that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was material for the Tribunal to do so, that the market in which the articles were sold were paper packed and wrapped in paper. Therefore, anything that enters into and forms part of all the end product must be deemed to have been used in completion of manufacture of the end product. The Honourable Court then referred to their own decision in J.K. Cotton Spinning and Weaving Mills Co. Ltd. v. Sales Tax Officer : 1965 (16) STC 563 where the scope of the expression in the manufacture was considered. They observed that where any particular process is so integrally connected with the ultimate production of inputs, that but for that process manufacture or processing of goods would be commercially inexpedient, articles required in that pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch fact, however, is disputed by the appellants, the question for decision is whether Modvat Credit will be available for the inputs which are actually used for being fitted in the generating sets cleared by the appellants on payment of duty on the total value thereof which includes the cost of such inputs also. The Collector s finding rejecting the appellants contention about the inclusion of the value of the Control Panels, Air Circuit Breakers for the purpose of computing the value of generating sets is likewise untenable. He has observed that the value of Control Panel and Air Circuit Breaker is includible in the value of the generating sets because the same increases the value of the end product at the time of marketing. The very same ..... X X X X Extracts X X X X X X X X Extracts X X X X
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