TaxTMI 
TaxTMI 
1993 (7) TMI 186
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....stant Collector disallowed modvat credit availed of for the period from September 1989 to January 1990 on the ground that it cannot be considered as an input "used in or in relation to the manufacture of motor vehicles". The lower appellate authority set aside the demand holding as follows: "I have gone through the case records. The point for determination is whether credit on 'floor mat' is allowed. The appellants have contested that the floor mats are not manufactured in running lengths but are designed and manufactured to their specifications and that even if it is to be considered as accessory, if supplied with the motor vehicle and of which the value is included in the A.V., it is an input eligible for credit of duty under Rule 57A of....
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....mits that inclusion of their value in assessable value is not a relevant factor for consideration for eligibility to Modvat credit under Rule 57A of Central Excise Rules. He cites the decision reported in 1989 (44) E.L.T. 578 (Tribunal) in the case of Sundaram Clayton Ltd. v. Collector of Central Excise, Coimbatore wherein Modvat credit has been disallowed on tool kits on the ground that they do not at all participate in the process of manufacture of mopeds and seeks to draw an analogy therefrom. 3. In reply, learned Counsel, Shri Lakshmikumaran, submits that Modvat credit is available to floor mats which are admittedly specifically designed and supplied along with LCVs as they are used in relation to the manufacture of motor vehicles inas....
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....anual made it obligatory for every manufacturer to affix the nameplates on the fans. In those circumstances, namely, for marketing the nameplates, these were essential. In other words, they could not be marketed without the nameplates. The relevant particulars of the fan for the determination of duty, depended on the particulars which are contained only in the nameplates. The Department's instructions requiring every manufacturer to affix the nameplates on the fans, indicate that nameplate was an essential ingredient to complete the process of manufacture for marketable electric fans. 9. In those circumstances, in our opinion, the Tribunal was right in arriving at the conclusion that the nameplate was not a piece of decoration. Without the....
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....clusion of their cost in the assessable value would also not be justified ." 4.2 This ratio has been followed by the West Regional Bench of the Tribunal in the case of Jayshree Industries and Others v. Collector of Central Excise, Rajkot reported in 1993 (63) E.L.T. 492 (Tri.) = 1992 (40) ECC 220 wherein the Tribunal upheld the eligibility of the Modvat credit in respect of duty paid on dry battery cells fitted to quartz clocks and time pieces. In para 12.1 of the order the Tribunal held that "on the question of eligibility of Modvat credit on tool kits for scooters, the South Regional Bench of the Tribunal in the case of Sundaram Clayton [1989 (44) E.L.T. 578 (Tribunal) = 1989 (22) ECC 190 (SRB)] held that the Modvat credit is not admissi....