TMI Blog1990 (5) TMI 128X X X X Extracts X X X X X X X X Extracts X X X X ..... the appeal only in respect of grinding medic 2. Shri R.M. Das, learned consultant, argued their case when the appeal came up for hearing. He strongly contended that the goods are definitely eligible for the Modvat benefit as they satisfy the criteria laid down in Rule 57A being goods used in or in relation to the manufacture of cement. The expression used in relation to the manufacture is very wide and would cover the goods in question. He referred to the detailed submissions in the appeal and pleaded that the appeal may be allowed. 3. The arguments were resisted strongly by Sri M.N. Biswas, learned SDR. He supported the order of the Collector (Appeals) which he said correctly reflected the legal position. He pleaded that the appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in or in relation to the manufacture of the final product further widens the scope of the input for which credit of duty is permitted. The rule excludes only machine, machinery, plant equipment parts, tools or appliances used for producing the goods. Reliance has also been placed on certain decisions of Cegat on input relief. In 1986 (25) E.L.T. 297 (Tribunal) = 1985 ECR 1536 Cegat, it was held by the Tribunal that inputs are used directly or indirectly in the manufacture of finished products. Hence even inputs used in the manufacture of intermediate products which alone went into the manufacture of the final products were held to be entitled to exemption. There is nothing in the Modvat Rules militating against this interpretation. Again i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt, equipment, tools, stores, spare parts, accessories, fuel or lubricants in the manufacture of processing of goods for sale or in mining or in generation or distribution of power. The scope of the relevant provisions for the purpose of the Central Sales Tax were wider in scope than the provisions relating to availment of Modvat credit. Thus, even machinery and equipment would be covered for the benefit available under the Central Sales Tax whereas they stand specifically excluded in the Modvat Scheme. The appellants have in this pointed out that what are specifically excluded from Modvat benefit are machinery, equipment etc. and the subject goods are consumables. While this contention is correct, it is necessary to realise that such a spe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tage removed from the actual manufacture of paper the use of sodium sulphate in the production of pulp would not amount to use in the manufacture of paper. They held that such an approach would seek to attempt to dissect an otherwise integrated process of manufacture of paper. They referred to the utilisation of the goods in question in the manufacturing process as distinct from the manufacturing apparatus. 7. Applying the ratio of the above judgment and decisions, we find that the use of the different goods listed by the appellants is for quarrying of limestone, plant repair, industrial structures, maintenance, kiln lining, transportation, roofing of factory structures, handgloves and shoes for safety. Laboratory glassware for laboratory ..... X X X X Extracts X X X X X X X X Extracts X X X X
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