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TMI Blog1990 (1) TMI 201X X X X Extracts X X X X X X X X Extracts X X X X ..... rned lower appellate authority in this context has held as under: "It is not used in manufacture or in relation to manufacture but is applied after the tools are manufactured for preservation. Therefore, it cannot be considered an input used in or in relation to manufacture. The learned consultant's view that manufacture is complete when the oil is applied and not before is not acceptable. The tools are complete tools, with or without such oils." 3. The learned Consultant pleaded that the application of the anti-rust and anti-corrosion oil is as a preventive measure to prevent the rust and corrosion of the tools after they have been manufactured. He has pleaded that this is an essential operation to be carried out in the factory and the g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an be considered as a component part of the paper for the following reasons: "If it is found that the use of paper core is necessary in "any process incidental or ancillary to the completion of" paper as marketable goods and it would consequently be commercially inexpedient to sell paper without the use of paper core, it would certainly be a constituent part of paper and would thus fall within the purview of the term "component parts" used in the notification. This takes us to the process of manufacture of paper.".................... "9. It is thus apparent that paper is made (1) in the form of rolls and (2) in the form of sheets and the paper which is sold in the form of sheets is cut in desired sizes by taking recourse to the process re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the accountal of the goods is also done after the application of the said oil. The very nature of the goods is such that these require to be protected from corrosion and rust, if they are to retain their utility and also for the reason of durability. In view of the above, following the ratio of the Hon'ble Supreme Court's rulings in the cases cited supra, we hold that application of oil is a process incidental and ancillary to the manufacture of the tools and in that view of the matter we hold the use of the said oil is in relation to the manufacture of the tools. We, therefore, hold that the learned lower appellate authority was in error, set aside the impugned order and allow the appeal of the appellants. X X X X Extracts X X X X X X X X Extracts X X X X
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