1991 (8) TMI 221

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....n during coiling and uncoiling etc. cannot be allowed Modvat credit in terms of Rule 57A of Modvat Rules and has held as under : "Judging from the function of the material, they are more in the nature of equipment or appliance used in the manufacture of the finished product i.e. Stainless steel sheets, to prevent scratches or absorption of oil in the coiling process, and as such, in terms of the explanation to Rule 57A of the Central Excise Rules, 1944, such materials are excluded from the purview of the term 'input' and in such a view of the matter, the material cannot be considered as an input used in or in relation to the manufacture of the finished product." 2. The applicants have urged the following questions of law for reference....

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...., equipment, apparatus, appliances etc. Hence the only question to be considered in the case of eligibility for inputs for Modvat Scheme is laid down under Rule 57A is to find out whether the input gets excluded because of the explanation. The allegation of the Department is that films are apparatus or appliances. According to Mc Graw Hill Dictionary of Scientific and Technical Terms, 'appliance' is given the meaning as below : 'A piece of equipment that draws electric or other energy and produces a desired work saving or other result, such as electric heater, a radio or an electronic range' 'Apparatus' has been defined thus, in the same dictionary as below : 'A compound instrument designed to carry out a specific function'. 'Equip....

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....ion to the manufacture of the product can be established as input, the benefit of Modvat credit should have been allowed. He pleaded that the items used have been held to be not eligible for Modvat credit as it is in the nature of equipment of appliance. He drew our attention to the items mentioned as exceptions in respect of which Modvat credit is not available under Rule 57A and referred to the relevant explanation under Rule 57A(1) which for convenience of reference is reproduced below : "Explanation. - For the purpose of this rule, inputs includes : (a). *       *       *       *       *   (b) *&nbsp....