9911796707
TMI Blog1996 (1) TMI 203X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by them in the manu- facture of fluorescent tube for sintering of `phosphor mix'. The Asstt. Collector has held in his order that the subject crucibles were in the nature of equipment, apparatus or appliances used for producing the goods. On appeal by them, the Collector (Appeals) had considered their contentions and the decision cited by them in support of their submissions but distinguished the same from the question before him and held that the crucibles do not have a direct nexus with the final product, fluorescent powder. He observed that the function of the crucible is limited to act as a heating medium and it plays no direct part in the emergence of the final product. He held that, as admitted by the Appellants, the crucible is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctor (Appeals) that silica crucibles do not make any direct contribution in the transformation of Phosphor mix into fluorescent powder and that they are adjunct to the machinery do not justify the finding reached by him. The eligibility to Modvat benefit is to be decided with reference to the provisions of Rule 57A. The benefit is admissible in respect of goods used in or in relation to the manufacture of the final products. The crucibles are definitely used in the manufacture of the final product. But the moot question will be how they are used and more importantly what they are. The latter part is important to see whether they belong to the group of items listed in the Explanation clause under Rule 57A which are excluded from the scope of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a refractory substance, such as graphite or porcelain used for melting, and calcining materials at high temperature. The manner of use of crucibles as described in the appeal is in keeping with their functioning as defined in standard dictionaries. Such manner of use is as apparatus and crucibles are apparatus. The decisions relied upon on behalf of the appellants which related to electrodes, "felt" in paper manufacture etc. do not advance their case as these items are not themselves the excluded type of goods under Rule 57A whereas crucibles themselves are apparatus used for producing goods. From the manner of use of the crucibles in the manufacturing process and from the findings of the Assistant Collector and the Collector (Appeals), it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the final product. No processing of the material takes place as such by them. Thus it was held that though they are used in or in relation to the manufacture of the final product, they were not used in that process for bringing about any change as any substance. No processing of any goods takes place by them. They are used only for indicating the temperature in the furnace or to show the degree to which the firing has taken place. Hence Modvat credit was held to be admissible. Such is not the case here. The apparatus sintered glass crucibles are used for bringing about change in the raw materials in the course of the manufacturing process. We are, therefore, of the view that the crucibles in question are not eligible for Modvat benefit. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
