1996 (8) TMI 303 - AT - Central Excise

Tribunal allows Modvat Credit for molybdenum wire in fluorescent tubes, rejecting Revenue's tool argument.

The Tribunal upheld the availability of Modvat Credit for molybdenum wire used in forming tungsten filaments for fluorescent tubes, rejecting the ... Modvat - Appellate Tribunal - Reference to Larger Bench Issues:Appeal against Modvat Credit for molybdenum wire used in tungsten filament formation.Analysis:The appeal challenges the lower authority's decision granting Modvat Credit for molybdenum wire used in forming tungsten filaments. The Department argues that the wire's use constitutes a tool, citing a previous case where Modvat credit was denied. However, subsequent instructions clarified that Modvat credit is available for wires like molybdenum. The Tribunal's decision in a different case regarding items like felt and wire-mesh supports the availability of Modvat credit. The Tribunal concludes that the wire's use is a technical necessity for filament formation in fluorescent tubes, making it eligible for Modvat Credit. The issue then shifts to whether molybdenum wire falls under the excluded category of items under Rule 57A.The Tribunal delves into the definitions of terms like apparatus, appliance, tool, etc., as per various dictionaries. The definitions provided by these dictionaries are crucial in determining whether molybdenum wire falls within the excluded category. After a detailed analysis, the Tribunal concludes that the term 'tool' does not cover the wire in question. Relying on the principles established by a previous Larger Bench decision and the Board's instructions, the Tribunal affirms that Modvat Credit is available for molybdenum wire. Referring the matter to the Larger Bench again would be redundant, as the principles for granting Modvat Credit are well-established. Therefore, the Tribunal dismisses the Revenue's plea and upholds the availability of Modvat Credit for the molybdenum wire used in this case.