TaxTMI 
TaxTMI 
1996 (2) TMI 263
X X X X Extracts X X X X
X X X X Extracts X X X X
....ire used in the process is eligible to the benefit of MODVAT under Rule 57A as input. 3.  Learned rep. of the appellants further stated that they purchased Copper wire on payment of duty and used it in the process of electroplating. In the electroplating process, the copper wire works as an anode i.e. as a conductor of electric current. With the help of copper wire working as anode, the hand tools are electroplated from the chemical mixture. The copper wire is also electroplated alongwith the hand tools and the electroplated copper wire cannot be used further in the same process as an anode and the same has to be abondoned as scrap. Therefore, the life of this copper wire is limited to one time current flow which is used in plating ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....'General Principles of Electroplating', which the representative said was applicable in their case, they admitted that the copper wire does not act as anode and as per this extract; And it is the article (hand tool) to be electroplated immersed in the solution which acts as cathode. 9.  Learned representative Shri Ramesh Gupta further argued that in any eventuality, the copper wire was to be considered as an input as it was being used in relation to the manufacture of the finished product and it could not be considered as a tool or an appliance as under Central Excise Tariff, copper wire is not classifiable as tools or appliances. In this connection, it was his contention that the tariff structure was required to be kept in view for....
X X X X Extracts X X X X
X X X X Extracts X X X X
....chnical Officer himself that it does not act as an anode. 11.  As observed by the learned Collector, the copper wire works as a mechanism or an appliance for suspending the article and for passing t he current to the article so that electroplating process is carried out. 12.  It was also his submission that the case law cited by the learned representative of the appellants was distinguishable. 13.  The learned representative reiterated the appellants' view-point. 14.  I have considered the above submissions. I observe that the relevant extracts of Canning Handbook on Electroplating (Chapter 9) reads as follows :- "Electrodeposition is the application of metallic coatings to metallic or other conductive sur....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the aforesaid book, the article to be electroplated acts as a cathode and not as an anode. In fact, it was wrong on the part of the apellants to make an attempt to mislead the authorities below. Even at the Tribunal stage, this technical material has been filed by them after the learned representative had been directed to do so and therafter, Technical Officer of the appilcants had to accept, in the face of the above literature that the hand tools dibbed in the solution act as a cathode. 15.  The Technical Officer, however, could not show with the help of this literature or otherwise that even the copper wire in question also acts as a cathode. 16. The wire being that of copper could naturally transmit electricity; However, ....