1989 (4) TMI 218

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.... Respondent. [Order per: K.S. Venkataramani, Member (T)].  - This appeal is directed against the order dated 29-2-1988 passed by the Collector of Central Excise (Appeals), Madras, by which he had allowed an application filed by the Department before him, under Section 35E(4) of the Central Excises and Salt Act, 1944 against the order of the Assistant Collector of Central Excise, Hosur D....

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....h were supplied along with the Moped is an input covered by Rule 57-A and eligible for MODVAT credit. The Collector of Central Excise, Coimbatore, did not agree with the decision of the Assistant Collector and, therefore, gave direction under Section 35-E(2) to the Assistant Collector, Hosur to seek a review of the Assistant Collector's order before the Collector (Appeals) and the Assistant Collec....

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....e held to be an input on which the appellants should be given MODVAT credit. The learned Counsel pointed out that the coverage of the provisions of Rule 57-A is wide enough to include the tool kits as an input. It is also, according to the appellants, not covered by the exclusions as to what would not constitute an input for the purpose of Rule 57-A as given in the Explanation to that Rule because....

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.... the final product. The question for consideration will, therefore, be how far the Tool kit can be said to be used in or in relation to the manufacture of the final product viz. Mopeds in the present case. Admittedly, the tools are not an integral part of the Moped. They are supplied as an accessory to the Two Wheeler. It is also not the case that the Moped is unfinished without the Tool kit. Mere....