1996 (4) TMI 216

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..... t appeal filed by the Collector, Central Excise, Chandigarh is directed against the order of Collector, Central Excise (Appeals). The Collector (Appeals), in his order, had held "I, therefore, hold that credit is admissible on steel balls." 2. The facts of the case, in brief, are that the respondents herein are engaged in the manufacture of ferrite powder and soft ferrite powder. For manufac .....

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..... f the Central Excise Rules, l944. He reiterates the grounds set out in the appeal memo. 4. There is a request from the respondents to decide the case on merits. 5. Heard the submissions of the learned DR and perused the records. I find that the term used in Rule 57A is `used in' or `in relation to' the manufacture of final product. In the instant case, steel balls are used in the ball .....

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..... In so far as the classification of steel balls [is] concerned they are classifiable under Chapter 72 of the CETA, 1985, they are thus not known or traded in the market as tools/equipments. Moreover, steel balls after repeated use in the ball mills wear out and thus even otherwise they appear in the final product in traces. Thus steel balls are not covered by the exclusion clause under Rule 57A of .....

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