TMI Blog1993 (1) TMI 170X X X X Extracts X X X X X X X X Extracts X X X X ..... , the learned Consultant for the appellant contended that there is a heavy dependence on the ribbons for the proper functioning of the printer and therefore on the basis of heavy functional dependence of the printer, the ribbon which is absolutely indispensable and without it the printer cannot function should be construed to be an input eligible for Modvat credit. It was further urged that the printer has no computational ability on its own and without the ribbon the printer cannot print or print out any. The ribbons are specially designed for exclusive use in conjunction with the printers and have no other use. It was further urged that the value of Ribbon is included in the assessed value of the printer by the Department for the purpos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bbon is not an essential part of typewriter to attract tax within the mischief of the 2nd Schedule to the Mysore Sales Tax Act, 1957, as typewriters were being sold in the market without the type ribbons. The Allahabad High Court in a ruling dated 20-2-1970 which was appealed against and considered in the abovesaid ruling of the Supreme Court took a similar view. It was urged that the decision of the Supreme Court, affirming the views of the Mysore High Court and Allahabad High Court was based on the issues arising under the provisions of the Sales Tax Acts and questions as to how the goods were actually marketed and their marketability were primarily taken note of for the view taken by the Supreme Court. We are unable to accede to the subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th the reasoning of the learned Collector (Appeals) in the impugned order and dismiss the appeal. Sd/- (S. Kalyanam) Member 5. The short point in the proceeding is whether the ribbons which are used in the printer attached to the computers can be considered as an input for the purpose of Modvat credit under Rule 57A of the Central Excises and Salt Act, 1944. The Ld. Consultant for the appellant pleaded that there is a heavy functional dependence on the ribbons for getting the output from the printer. He pleaded that the analogy of the typewriter with a printer may not be very apt as the typewriter as such can be used for the limited purpose of getting Stencils without the use of the ribbon. Printer cannot give its output which is i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the specific finished product and that inasmuch as the use of the ribbon cartridge is in relation to the printer the benefit of Modvat credit should be allowed. His plea is that the term in or in relation to has wide import and should cover the use of the cartridge in the printer. He pleaded that the ruling of the Hon ble Supreme Court which has been cited by the revenue against him in the case of State of U.P. Another v. Kores (India) Ltd. reported in 1977, Sales Tax Cases Vol. 39, page 8, would come in the context of a taxation statute where the revenue authorities wanted to bring within the ambit of the levy the ribbon also for the purpose of levy of the tax. He pleaded inasmuch as under Rule 57A the words used are in or in relation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the printer is complete without the ribbon being fitted onto it. The appellant s plea is that they are marketing the printers with the ribbon fitted in the same. It is not the case of the appellant that the printer cannot be marketed without the fitment of the ribbons. As it is all that is required is, as explained to us during the hearing, that the ribbon cartridge is placed in position in the slot provided for the same and the printer then would be ready for the print-out on the paper. The position is similar to that in the case of typewriter as mentioned above. Keeping in view of the above I agree with my learned brother that the order of the learned Collector has to be upheld and the appeal is to be dismissed. Sd/- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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