TMI Blog1994 (11) TMI 262X X X X Extracts X X X X X X X X Extracts X X X X ..... th a condonation delay applications. The delay in filing of supplementary appeals is condoned inasmuch as one appeal covering all the cases earlier was in time. The short point that arises for consideration in the appeals is whether the Modvat credit is available in respect of the steel barrels in which transformer oil which is ultimately used as a coolant in the transformer is transported. 3. The learned Counsel pleaded that the appellants manufactured transformers and the transformer oil which is sent alongwith the transformers for being used as a coolant at the premises of the buyer. The oil he pleaded is filled into transformers and its life is co-terminus with the life of the transformer. He pleaded that even though the transformer o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o paid for transformers inclusive of the value of these items. It was, therefore, urged that transformer oil is an essential component for the functioning of the transformer and that the transformer oil is transported in steel drums or barrels, and which should be construed to be a packaging material for the important and essential component of transformer. For the purpose of benefit of MODVAT credit, the learned Counsel also placed reliance on the Rule 2(a) of the Rules of Interpretation of schedule to Central Excise Tariff Act, 1985 to contend that even if goods are in semi-assembled or un-assembled condition, it should be deemed to be cleared in assembled condition. Referring to the misc. application, the learned Counsel referred to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trade circles the transformer is not treated as complete unless the oil is filled in it. While it may be accepted that coolant is necessary for the transformers, transformer is an electrical equipment and its manufacture can said to be complete the moment all the electrical components for conversion of the voltage are in place and it can be assembled as such. For making it functional as in the case of a typewriter ribbon mentioned above, the coolant added, therefore, cannot be considered as a component for the purpose of transformer and the question of extending the benefit of MODVAT credit in respect of the barrels as such would not arise. 7. The appellants plea is that the value of both the transformer oil and barrels in which it is pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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