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TMI Blog2004 (10) TMI 122X X X X Extracts X X X X X X X X Extracts X X X X ..... ndonation of delay in filing the appeals. Shri O.P. Arora, learned S.D.R., mentioned that the Revenue has initially filed one common Appeal No. E/1546/2004-B within the time specified in Section 35B of the Central Excise Act; that the two supplementary appeals have been filed as the Commissioner (Appeals) had disposed of three appeals by the impugned Order. After hearing Sh. S.A. Gundecha, Director of Respondent Company, we condone the delay in filing these two appeals as the main appeal had been filed within the time limit specified in Section 35B of the Central Excise Act. 3. The learned S.D.R. mentioned that the Respondents manufacture motor vehicles and avail of Modvat Credit of the duty paid on inputs under Rule 57A of the Central Exc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... final product; that thus the Modvat credit availed on the inputs for one final product cannot be used for payment of duty on other final product; that thus the Modvat Credit taken on inputs used in the manufacture of Matador vehicle cannot be utilised towards the payment of duty on Tempo Travellers. 4.2 He, further, submitted that Commissioner (Appeals) has also allowed the Modvat Credit in respect of tool kits following the decision of the Tribunal in the case of Bajaj Auto Ltd. v C.C.E., Pune, 1996 (88) E.L.T. 355 (T); that tool kits cannot be said to be used in or in relation to the manufacture of final products, i.e. Motor Vehicles; that the Supreme Court has dismissed the S.L.P. filed by M/s. Tata Engineering & Locomotive Co. Ltd. as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bad, 1996 (88) E.L.T. 355 (T) wherein the Modvat Credit of the duty paid on tool kits was allowed holding that supply of these items, which is required statutorily under the Motor Vehicle Rules, enriches the value of the vehicles and gives them the marketability in the light of the trade pattern. He also relied upon the decision in the case of C.C.E., Indore v Bajaj Tempo Ltd., Final Order No. A/540/01-NB dated -04-2001. 6. We have considered the submissions of both the sides. During the relevant periods (1989-1990), Rule 57A of the Central Excise Rules provided for taking Modvat Credit of the duty on the specified inputs which are used in or in relation to the manufacture of the specified final products under Notification No. 177/86-C.E., ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en in respect of the said units, towards payment of duty on Tempo Travellers since the said inputs is intended for use (and in fact is used) in the manufacture of motor vehicles. The provisions of Rule 57F(3) and the Notification No. 177/86-C.E. do not provide that the inputs credit had to be used towards payment of duty on varietywise of each products. Rule 57F(3)(i) also uses the phrase "on any of the final products" and not "on the final product". The Tribunal has also in Bajaj Tempo case, supra, held that the Commissioner has distinguished between 'door handles for matador and 'door handles for Tempo Travellers' which "certainly is not the intention behind the Modvat Scheme". The Tribunal has also referred to the decision in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Petitioners with the motor vehicle chasis manufactured by them at the request of the customers cannot be said to be "inputs" and used in or in relation to the manufacture of motor vehicle chasis." The Special Leave Petition filed by the Petitioners has been dismissed by the Supreme Court as reported in 1994 (73) E.L.T. A129 (S.C.). The Appellate Tribunal has also in the case of Daewoo Motors India Ltd. v. C.C.E., 2001 (135) E.L.T. 596 (T) has followed the decision of the Patna High Court as affirmed by the Supreme Court and has held that the following legal positions emerge : "Manufacturers of automobiles are not entitled to include the value of jack assemblies and tool kits in the assessable value of the automobile with eligibility to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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