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TMI Blog1997 (4) TMI 285X X X X Extracts X X X X X X X X Extracts X X X X ..... questions arise for consideration :- "(a) Whether in the light of the above discussion, the said products can be treated as "input" in terms of Rule 57A read with exclusion clause (i) of the Explanation read with Rule 57G of Central Excise Rules, 1944. (b) Whether the said product fulfils the description given under explanation 57A." 3. Manufacturer claimed Modavt credit in respect of duty paid on the inputs, namely, Dryer Press Felt and Phosphor Bronze Metal wire. The claim was rejected by the jurisdictional Assistant Commissioner holding that these inputs are excluded from the purview of Rule 57A of the Rules by virtue of exclusion clause (i) to the Explanation to the Rule and this order having been confirmed by the Collector (App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ject to the provisions of this section and the conditions and instructions that may be specified in the notification. * * * * * * * * * Explanation - For the purpose of this rule, "inputs include - (a) * * * * * * * * * (b) * * * * * * * * * but does not include - (i) machines, machinery, plant, equipment, apparatus, tools or appliances used for producing or processing of any goods or for bringing about any change in any substance in or in relation to the manufacture of final products;" * ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the exclusion clause and hence Rule 57A of the Rules cannot apply to these goods. It was contended that these parts or components of machines are "inputs" where the machines are the final products, they are not "inputs" where the final products are not machines but goods manufactured using such machines. 7. The use of these goods was found to be the following :- Pulp with excess water comes from the pulp making machine to the paper-making machine. Pulp is allowed to fall on Phosphor the wire mesh and web of pulp fibre is formed. It moves on moving wire mesh and is allowed to fall on felt. The moving felt carries the pulp web to the drier and is calendered or pressed being wound on rolls and treated further. Wet paper is passed b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a question of law. We are satisfied that a question of law which requires reference to the High Court arises out of the order passed by the Tribunal. The question suggested are not accurate and requires modification. 10. The following question of law which arises out of the order disposing of the appeals requires reference to the High Court :- Whether the Appellate Tribunal after having found that Dryer Press Felt, Phosphor Bronze Metallic Wire and Metallic Wire (cloth) are parts of machine and used in relation to the manufacture of specified final products, is correct in holding that these parts of machine are not excluded from the definition of "input" by exclusion clause (i) of the Explanation to Rule 57A of the Central Excise Ru ..... X X X X Extracts X X X X X X X X Extracts X X X X
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