TMI Blog2002 (1) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... e respondent is engaged in the manufacture of paper. It uses Wire Mesh and Felt and claimed Modvat credit. The Assessing Authority disallowed the claim of the respondent on the ground that Wire Mesh and Felt were not inputs in the manufacture of paper. The Collector (Appeals) reversed the order. The department filed an appeal before the Tribunal. The claim of the Revenue was not accepted. Hence a petition for reference was filed. The Tribunal has referred the following question for the opinion of this court : "Whether the Appellate Tribunal after having found that wire and felt are parts of machinery used in relation to the manufacture of specified product is correct and that these parts of machinery are not excluded from the input while ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the official gazette specify in this behalf, for the purpose of allowing credit of any duty of excise or the additional duty under Section 3 of the Customs Tariff Act, 1975 (51 of 1975), as may be specified in the said notification (hereinafter referred to as the "specified duty") paid on the goods used in or in relation to the manufacture of the said final products whether directly or indirectly and whether contained in the final product or not (hereinafter referred to as the "inputs") and for utilising the credit so allowed towards payment of duty of excise leviable on the final products, whether under the Act or under any other Act, as may be specified in the said notification, subject to the provisions of this section and the condit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) crates and glass bottles used for aerated waters." ** ** ** ** ** ** ** ** ** ** ** ** ** ** 8.Another provision which deserves notice is contained in Rule 57Q which, inter alia, provides as under :- "RULE 57Q. Applicability.- (1) The provisions of this section shall apply to finished excisable goods of the description specified in the Annexure below (hereinafter referred to as the "final products") for the purpose of allowing credit of specified duty paid on the capital goods used by the manufacturer in his factory and for utilising the credit so allowed towards payment of duty of excise leviable on the final products, or as the case may be, on such Capital goods, if such capital goods have been permitted to be cleared unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of excisable goods is entitled to claim Modvat credit in respect of the "goods used in or in relation to the manufacture of the said final products whether directly or indirectly and whether contained in the final products or not". A further perusal of the Explanation shows that 'inputs' includes all things which are used within the factory for production, including paints, packaging materials, fuel, etc. 10.It is not disputed that Wire Mesh and the Synthetic Cloth are used as replaceable goods in the course of manufacture of paper. They are used directly as well as indirectly for the manufacture of the final product. These shall fall within the concept of 'inputs' as contained in Rule 57A. 11.Mr. Gumber contends that Wire Mesh and F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng Officer who had disallowed the claim as not covered under Rule 57A. If that was so, he was under obligation to give the benefit under Rule 57Q which was clearly admissible if the case of the Revenue were to be accepted in toto. Thus, the question as posed in these references has to be answered against the Revenue. 16.No other point has been raised 17.We have also got petitions under Section 35H. In view of the above, the view of the Tribunal having been confirmed we do not think that any question of law arises which may require issuing of a direction to the Tribunal to make a reference to this Court. Resultantly, the petitions are dismissed. In the circumstances of these cases there will be no order as to costs. - - TaxTMI - TMI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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