TMI Blog1996 (7) TMI 340X X X X Extracts X X X X X X X X Extracts X X X X ..... . 2. The facts of the case are the appellants are engaged in this case in the manufacture of dry cell batteries. During the process of manufacture of dry cell batteries the appellants carried out the process of testing at various stages with the help of various testing equipment/appliances etc. The department alleged that in view of the definition of capital goods appearing in the Explanation to Rule 57Q, the above referred 3 products are testing machines and measuring machines and therefore not eligible for Modvat benefit. 3. Shri Swaminathan, ld. Consultant appearing for the appellants submits that electrically heated muffle furnace is used in analytical servicing department for heating different raw materials/inputs at different temp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atus, tool or appliances used for producing or processing of any goods or for bringing about any change in any substance for the manufacture of final products. He submits that 3 items on which the Modvat credit has been claimed are used for processing finished products. He submits that Apex Court in the case of Rajasthan State Chemical Works - 1991 (55) E.L.T. 444 (SC), in Para 13 held that the natural meaning of the word `process is mode of treatment of certain materials in order to produce a good result, a species of activity performed on the subject matter in order to transform to reduce it to a certain stage. According to Oxford Dictionary one of the meanings of the word `process is a continuous and regular action or succession of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of Avery India Limited v. Commercial Tax Officer [1983 (52) STC 297] in this case the Hon ble High Court of Calcutta had held that where weighing and testing machines are attached to the manufacturing plant at various points and without them at various stages of process, no manufacture would be possible, they in such cases, would be inseparably linked up with the process of manufacture. The ld. Consultant submits that 3 items referred to above are attached to the manufacturing plant and without them it was not possible to manufacture dry battery cells and therefore in view of the ratio of this judgment of the Hon ble Calcutta High Court that these 3 items are linked up with the process of manufacture and are goods which may be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also relied upon the judgment of the Apex Court in the case of J.K. Cotton Spinning Weaving Co. Mills Ltd. [1965 (16) STC 563] as also on the ratio of the Hon ble Supreme Court in the case of Eastend Paper Industries Ltd. [1989 (43) E.L.T. 291] and the decision of this Tribunal in the case of Andhra Pradesh Paper Mills Ltd. [1990 (50) E.L.T. 252]. Reiterating the findings of the lower authorities the ld. JDR prayed that the appeal may be rejected. 5. Heard the submissions of both sides. I find that the first issue for determination is whether 3 products in dispute are used in the process of manufacture of the finished goods. Finished goods in the instant case are dry cell batteries. Electrically heated muffle furnace is used for testing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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