9911796707
TMI Blog2002 (1) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... referred to the facts in G.C.R. No. 14 of 1999. These may be briefly noticed. 3.The respondent is engaged in the manufacture of paper. It uses Wire Mesh and Felt and claimed Modvat credit. The Assessing Authority disallowed the claim of the respondent on the ground that Wire Mesh and Felt were not inputs in the manufacture of paper. The Collector (Appeals) reversed the order. The department filed an appeal before the Tribunal. The claim of the Revenue was not accepted. Hence a petition for reference was filed. The Tribunal has referred the following question for the opinion of this court : "Whether the Appellate Tribunal after having found that wire and felt are parts of machinery used in relation to the manufacture of specified product ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to as the "final products"), as the Central Government may, by notification in the official gazette specify in this behalf, for the purpose of allowing credit of any duty of excise or the additional duty under Section 3 of the Customs Tariff Act, 1975 (51 of 1975), as may be specified in the said notification (hereinafter referred to as the "specified duty") paid on the goods used in or in relation to the manufacture of the said final products whether directly or indirectly and whether contained in the final product or not (hereinafter referred to as the "inputs") and for utilising the credit so allowed towards payment of duty of excise leviable on the final products, whether under the Act or under any other Act, as may be specified in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act; and (iv) crates and glass bottles used for aerated waters." ** ** ** ** ** ** ** ** ** ** ** ** ** ** 8.Another provision which deserves notice is contained in Rule 57Q which, inter alia, provides as under :- "RULE 57Q. Applicability.- (1) The provisions of this section shall apply to finished excisable goods of the description specified in the Annexure below (hereinafter referred to as the "final products") for the purpose of allowing credit of specified duty paid on the capital goods used by the manufacturer in his factory and for utilising the credit so allowed towards payment of duty of excise leviable on the final products, or as the case may be, on such Capital goods, if such capital goods have been permitted to be cleared ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credit in respect of the "goods used in or in relation to the manufacture of the said final products whether directly or indirectly and whether contained in the final products or not". A further perusal of the Explanation shows that 'inputs' includes all things which are used within the factory for production, including paints, packaging materials, fuel, etc. 10.It is not disputed that Wire Mesh and the Synthetic Cloth are used as replaceable goods in the course of manufacture of paper. They are used directly as well as indirectly for the manufacture of the final product. These shall fall within the concept of 'inputs' as contained in Rule 57A. 11.Mr. Gumber contends that Wire Mesh and Felt are a part of the machine or plant and not input ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
