TMI Blog1989 (10) TMI 147X X X X Extracts X X X X X X X X Extracts X X X X ..... - This appeal is against the order of Collector of Central Excise (Appeals), Madras. The short point that falls for decision in the appeal is whether Diaphragms and Air Bags used in the appellants factory are eligible for the benefit of MODVAT credit under Rule 57A. The lower authorities have held that these two items connected to the mould are used for giving shape to the tyres and in view of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nother manufacturer had been given the benefit in terms of Notification 217/86 under which exemption to MODVAT items if used within the factory of production in the manufacture of finished product is permitted. He pleaded that the items excluded from the purview of the benefit as in the case of Rule 57A are as under: Explanation. - For the purpose of this notification, inputs does not include ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ification 217/86. He pleaded that the appellants manufactured the two items in their factory which are captively consumed and as it is, they should have thought of taking the benefit of proviso to Rule 9 under which excisable goods can be removed without payment of duty leviable thereon, if they are consumed or utilised in place where such goods are produced or manufactured or any premises appurte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the Concise Oxford Dictionary is as under : Destroy; use up; eat or drink, spend, waste. In the context of the items, it is observed that these are used in conjunction with the moulds and the two items together give shape to the tyres manufactured in the appellants factory and the two items constitute one apparatus for the purpose. These individual items have to be considered as equip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... We observe that the order of the Collector (Appeals), New Delhi cited by the appellants, has only gone into the question of the scope of the wording of Notification 217/86 vis-a-vis Notification 201/79 and has not examined the question whether in terms of the specific exclusions the items provided in Notification 217/86, the appellants goods stood precluded or otherwise from the benefit of the N ..... X X X X Extracts X X X X X X X X Extracts X X X X
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