TaxTMI 
TaxTMI 
1991 (3) TMI 268
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....ndent. [Order per: V.P. Gulati, Member (T) (ORAL)]. - This is an appeal filed against the order of the Collector of Central Excise (Appeals), Madras dated 29-7-1988. The Learned Consultant at the outset fairly pointed out that the matter is covered against him by the order of this Bench in Order No. 299/90 dated 4-4-1990 [1990 (50) E.L.T. 252 (Tri.)]. He has pleaded that he will be confining hi....
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....ater and moisture content from the pulp and the wire mesh is used for removing the moisture and also helps in further drying up of the pulp material and participates in the formation of the paper on the machine. In this view of the matter, he pleaded that the benefit of MODVAT is available to them. He further pleaded that only in the event when these items are treated as appliances or tools, these....
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....rom the benefit of Modvat credit. In this connection, the relevant portion of the order of the Tribunal cited supra is extracted below: "So far as dandy covers, wire netting and woollen felts are concerned these are essentially parts of the paper making machinery and their use has to be held to be to keep the paper; making machinery functional for the production of paper. While these participate ....
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....as a corollary thereto the parts which are used in these machineries to make them functional also are not entitled to the benefit of MODVAT scheme. These parts which are used as replacement from time to time have to be held to have been used in relation to the machines themselves and not in relation to the manufacture of the goods. In the scheme of MODVAT if the parts of the machines are included ....