TMI Blog1993 (11) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... the proviso to Rule 57A under which machines, machinery, plant, equipment, apparatus, tools or appliances used for producing or processing of any goods are not considered as inputs for the purpose of MODVAT credit under Rule 57A and that the two items are in the nature of apparatus or appliances. The learned lower appellate authority has also relied upon the decision of the West Regional Bench in the case of Mukund Iron and Steel Works Ltd. v. C.C.E., reported in 1990 (45) E.L.T. 84 (Tri.) and has referred to the observation of the Tribunal in that case that the materials which are required for effective functioning and maintenance of the machinery would stand excluded from the purview of the MODVAT Scheme. Adverting to the use of the two ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et (Product Data Sheet 7230-A May 1, 1989). Under this the uses of Tungsten and Molybdenum have been set out as under : Tungsten and molybdenum are widely used for high temperature parts in lamps and electronic tubes as well as in such non-lamp applications as kiln furniture, furnace boats, heating elements, and heat shields on rockets. He also drew our attention to the technical write-up filed by the appellants wherein the use of the electrodes is set out as under : There are three electrode assemblies, each consisting of one number water cooled MS jackets and two numbers Molybdenum plates of size 100 mm x 115 mm x 3 mm thickness. These electrodes have to carry a current of the order 900 amps and has to withstand temperature upto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ones, he pleaded, these were more part of the mechanism to produce the fibres and should be considered as a part of the machine. He pleaded that the case of W.S. Industries (India) Ltd. cited by the appellants supra does not apply to the facts of this case. 4. We have given a careful thought to the pleas of both the sides. We observe that in a number of cases we have held that the electrodes which are used in the electrolytic paths are eligible for the benefit of MODVAT credit. This has been held for the reason that these electrodes participate in the electrolysis process. In the present case the electrodes conduct the electricity to generate the heat. These stand on a different footing. The electrodes have a very long life and can be tak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nu- facture of the ceramic materials but it is an essential aid and is designed specifically for being placed in the furnace to give an indication of the degree of fire. In that view of the matter it has to be held that it is used in or in relation to the manufacture of the final product. We, therefore, hold that on merits the findings of the learned lower authorities are not maintainable and the plea of the appellant has to be allowed. The appeal is thus allowed in the above terms. In view of the above we hold that so far as Molybdenum plates are concerned, the same are not eligible for the benefit of the MODVAT credit. In regard to Tungsten nozzles we hold these help in giving shape to the end-product and have to be held to be an item ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
