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TMI Blog2002 (4) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... ment, by two show cause notices proposed to deny Modvat credit of the CVD paid on the toners cleared along with photocopiers during June, 1998 - June, 1999. The proposal was contested on various grounds. One of the grounds was that toner was an accessory of photocopier and hence eligible for Modvat credit in terms of Rule 57B(1)(vi). The jurisdictional Dy. Commissioner of Central Excise, who adjudicated the dispute, found toner to be an accessory of photocopier but disallowed the Modvat credit on the basis of a finding that toner was not a part of photocopier and was not used in or in relation to the manufacture of photocopier. He held it to be a consumable like petrol in a car or film in a camera. The adjudicating authority relied on the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ectrostatic image readable; the toner is either deposited directly on coated paper or transfer from a charged surface to ordinary paper, then fused to the paper by heating." Ld. Counsel suggests yet another analogy by submitting that the toner is to the photocopier as a typewriter ribbon is to the typewriter. In the case of Kores (India) Ltd., Counsel points out, the Apex Court considered typewriter ribbon as accessory of typewriter. In CCE, Jaipur v. Lipi Data Systems [1995 (80) E.L.T. 542] cited by the Counsel, a Larger Bench of this Tribunal held that Modvat credit was admissible in respect of the ribbon fitted in a computer printer. Ld. Advocate contextually points out that the Larger Bench did not approve the SRB decision in Wipro In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... support of the finding of the lower appellate authority that the toner was a consumable and not an essential part of the photocopier. He pleads for sustaining the order of the Commissioner (Appeals). 4. I have carefully examined the submissions. Admittedly, the toners were cleared along with the photocopiers and duty of excise was paid on the entire clearance with the value of toner included in the assessable value of photocopier. Modvat credit of CVD paid on toner has been denied by both the authorities below on the ground that the item is not an eligible input. The two authorities, however, are not concurrent on the finer reason for holding the toner to be ineligible for Modvat credit. The adjudicating authority held the item to be an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oducts or not, namely :- (i) ............................ (ii) ............................ (iii) ............................ (iv) ............................ (v) ............................ (vi) accessories of the final product cleared along with such final product, the value of which is included in the assessable value of the final product." The fact that toner was cleared along with photocopying machine and the value of the toner was included in the assessable value of the photocopying machine at the time of such clearance during the material period is not in dispute. That the toner was an accessory of the photocopying machine was a clear finding of fact rendered b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Tribunal's finding in Wipro infotech case that a ribbon used in computer printer is an accessory of the printer can also claim support from the Apex Court's decision. The finding of the Tribunal's Larger Bench in Lipi Data Systems (supra) is to the effect that a ribbon used in a computer printer is a component/part rather than accessory of the printer. It seems to be per incuriam in the light of the Apex Court's judgment in Kores (India) case. In the case of Devilog Systems cited by ld. DR, the issue before the Tribunal was as to whether the value of toner cleared along with photocopier was includible in the assessable value of the copier under Section 4 of the Central Excise Act. In the instant case, both sides have accepted the includ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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