TaxTMI 
TaxTMI 
1994 (2) TMI 143
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....picture tubes. The appellants herein are engaged in the manufacture of picture tubes for black and white TV sets classified under Chapter 85 CETA, 1985. The inputs and outputs are covered by the modvat scheme and were duly declared to the Department. Show cause notices were issued seeking to deny modvat credit on the ground that the disputed items were in the nature of apparatus/appliances and, therefore, not covered by the definition of inputs in terms of Rule 57A of the Central Excise Rules. The Assistant Collector confirmed the denial of modvat credit on the items in question and the lower appellate authority upheld the orders of the adjudicating authority. Hence these appeals, as follows : Appeal No. Period in dispute Amount....
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.... another major item of input namely electron gun is sealed on to the glass shell. Subsequently, vacuuming and degassing under high temperatures and high current is carried out. The next three processes of banding, graphite painting as well as painting with silicon resin is carried out. The final Q.C. test is, thereafter carried out on the finished product and the Q.C. cleared product is packed in cartons and is ready for shipment. The nature and purpose of the input material and their functions in the manufacturing process are described below : Caustic soda : The glass shell is the principal raw material used in the manufacture of picture tubes, Glass is a highly inert material and needs to be transformed into active material in order to....
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....portion of the glass shell is coated with phosphorous. In order to ensure that the phosphorous coating takes place evenly, the glass shell is lacquered with an imported lacquer. The process of lacquering consists of spraying lacquer on to the inner portion of the glass shell under conditions of high pressure. The high pressure conditions are created by nitrogen gas, without the usage of which such conditions cannot be created. Oxygen Gas : The Electron Gun is sealed on to the glass shell in order to enable transmission of electrons on to the TV screen. Oxygen gas is used in the sealing process in order to generate high temperature under which the process takes place. 4. The process described above has been set out in the appellants' o....
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....tter of decisions of this Tribunal. In the case of Andhra Pradesh Paper Mills Ltd. v. CCE - 1990 (50) E.L.T. 252 the Tribunal held that soda ash and alfloc used in the process of softening of water which is a process for the manufacture of the final product viz. paper were eligible for modvat credit but denied the benefit of modvat to hydrochloric acid used for cleaning of wiremesh as and when the same is found to have been clogged. 6. In the case of Straw Products Ltd. v. Collector of Central Excise and Customs - 1992 (59) E.L.T. 572 the benefit of modvat credit was extended to chemicals and resin used for treatment of water used in the manufacture of paper and for manufacture of steam which was used for drying the paper. It was held th....