9911796707
TMI Blog2004 (11) TMI 206X X X X Extracts X X X X X X X X Extracts X X X X ..... ase, the electronic equipment while working generates lot of heat. When the temperature exceeds 55 Degree Celsius, the entire equipment will burn out and hence in order to keep the temperature at desired level of 30 Degree Celsius, the Air conditioner is used. In the manufacture of a final product, all the important parameters which have a bearing on the entire construction of the final product will have to be reckoned and to be treated as inputs. This final product when manufactured and while functioning will generate enormous amount of heat, which will render the final product non-functional and causing burnout if suitable cushion, remedial or preventive factor is not built in to take care of the equipment from burning out due to excess h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /94 (NT) as amended. In view of the above, the Air conditioner in this case is an important input in the manufacture of the final product without which the final product will not function beyond a certain temperature and in order to keep the same, these inputs are used in the construction of the final product. Further the customer specification also specifically includes the Air conditioners and the supply will have to be effected as per the order specification. (iv) The imposition of penalty under Rule 173Q should be resorted to only under circumstances where goods are removed without payment of duty or modvat credit is taken on documents without ensuring the duty paid character of such input documents or indulges in any activity with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nditioners fitted to the entire system becomes part and parcel of the entire equipment, even in terms of the contract entered with the President of India, which is produced before us. The air conditioners for the equipment vehicle are fitted to the shelter Terminal that is carried to the equipment vehicle. The learned Counsel files a list of apparatus, a gist of the decided citations and submits that the issue is no longer res integra as in similar cases where the Air Conditioners have been fitted to the equipment and are essential for the purpose of running the equipment, the grant of Modvat credit has been considered and these judgments are not distinguishable. He submits that the reasoning given by the Commissioner is fallacious and not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in relation to manufacture of final products-exclusion of machines, machinery, substance, equipment etc., from the ambit of R 57A not makes the Rule discriminatory or arbitrary so as to be offensive to Art. 14 of Col. 6. 1996 (86) E.L.T. 613 (T) - Union Carbide India Ltd. v. CCE Words 'in relation to the manufacture' has been used to widen and expand the scope, meaning and content of the expression 'inputs' so as to attract also goods which do not enter directly or indirectly into the finished product but are used in any activity concerned with or pertaining to the manufacture of finished goods. 7. 1996 (84) E.L.T. 483 (T) - Globe Radio Company v. CCE Modvat scheme being a beneficial piece of l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of caustic soda lye- eligible for Modvat Credit. 13. 1989 (39) E.L.T. 169 (S.C.) - CCE v. Jay Engineering Works Ltd. Nameplate affixed on fan an input and essential ingredient hence entitled to set off of duty under Notn. 201/79-CE, even if fan can perform its essential function without a nameplate because fan does not become marketable unless nameplate is affixed. 3. The learned DR distinguished the order and pointed out that the Air Conditioners perform independent function and its function has no relevance to the Transportable Satellite Communication Equipment, which are custom made product for the defence requirement. Therefore, the denial of Modvat credit is justified. 4. On a careful consideration, w ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
