TMI Blog1990 (12) TMI 238X X X X Extracts X X X X X X X X Extracts X X X X ..... hority has held that the Graphite rods are in the nature of appliance or equipment and hence by virtue of proviso to Rule 57A the same stood excluded from the scope of the MODVAT rules for the purpose of input credit. So far as the A.P.C. powder is concerned, it has been held by the same original authority that to be not an input in relation to the manufacture of castings but in relation to the dross and gases, which are produced during the manufacturing process at the stage of melting of the metal. 2. The learned SDR for the Department pleaded that so far as crucible is concerned the same participates in the manufacturing process and but not so the carbon rod. He pleaded that the molten metal is produced in the crucibles and is poured ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der Chapter 38." In regard to the A.P.C. powder, the learned SDR again referred to the write up as set out in the reply to the show cause notice and the relevant portion is reproduced below: This is a flux used as an anti-piping compound. This powder is spread on the molten metal as it comes up in the riser. This is used to prevent the molten metal in the riser from solidifying so that it can feed the shrinkage in the casting. Further, the learned S.D.R., while reiterating the grounds set out in the grounds of appeal, pleaded that the graphite rods do not go into the material of the final manufacture and the intermediate rings made from these graphite rods are used alongwith the die which is in the nature of a tool and, therefore, d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntial requirement and so also the venting of the gases. In this context we, therefore hold that the use of A.P.C. powder is during the process of the manufacture of the castings at an intermediate stage and we do not find any merit in the plea of the Revenue in this regard. So far as the use of rod is concerned, it is admittedly for stirring of the molten metal and during the course of stirring it gets consumed also. The question would be whether it is used as such would bring it within the excluded category of items under Rule 57A. Item (i) under Explanation to Rule 57A(1), which covers the excluded categories within which the item has been held to be falling by the learned lower authority is as under :- (i) machines, machinery, plant, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hing; outfit; Apparatus : a. set of materials or equipment designed for a particular use; b. an instrument or appliance designed for a specific operation; a group of bodily parts and esp. organs having a common function: 2. the functional processes by means of which a systematized activity is carried out; Equipment: the set of articles or physical resources serving to equip a person or thing: as (1) the implements used in an operation or Activity APPARATUS (2) all the fixed assets other than land and buildings of a business enterprise; b. a piece of such equipment. The rod has to be considered as a piece of equipment performing a desired function of stirring the metal mix. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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