TaxTMI 
TaxTMI 
1995 (5) TMI 175
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.... oils in the manufacture of motor vehicle components. 2.  The appellants have asked for a decision on merits. Hence, we heard Shri Sharad Bhansali, SDR and perused the records. The appellants are the manufacturers inter alia of Tractors falling under erstwhile Tariff Item 34-II, I.C. Engines for these tractors falling under TI 29 and some of the tractor components (M.V. parts NSS) falling under TI 68 of Central Excise Tariff. In the manufacture of these components, which are parts of the tractors, they use cast iron and steel which are subjected to various processes like machining, broaching, threading, tapping, gear - shaving, reaming, gear cutting, deep drilling, milling, boring , heat treatment, etc. to give them requisite shape, ....
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...., which is essential for components such as gears, crankshafts, etc. consists of heating the components in a furnace and quenching in oil. The oil must have specific properties, in order to give the specific cooling rate, at specific temperatures. Otherwise the components being hardened will get cracked. Metaquench - 85, 42 etc. is one such quenching oil and completes the process of heat treatment in the manufacturing process. (c) Testing Oils : Every engine in the course of completing its manufacture has to be tested and run in or bedding in, at least for three to four hours. During this test wear particles result from piston rings, liners and bearings, etc. During testing, it is necessary to fill special running in/testing oil in the oil....
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....ow cause notices were, therefore, withdrawn. The above Order-in-Original was set aside by the learned Collector of Central Excise (Appeals) vide his Order-in-Appeal dated 19-8-1988 on the grounds inter alia that the cutting oils, quenching oils, testing oils, etc. in the instant case are used only as lubricants for the manufacture of component parts and they are not used as inputs or raw materials which either directly go into the manufacture of the finished product or go into the composition of the finished product, thereby forming a part of the finished product. Hence this appeal. 5. In the instant case, the oils viz. cutting, quenching and testing oils have neither been used as raw materials nor component parts but are only used as....
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....ts cannot be considered as raw material or component parts. 6.1 In the case of Rockdrill (India) Ltd. v. Collector of Central Excise, Jaipur reported in [1984 (17) E.L.T. 497], the Tribunal held that graphite moulds prepared from graphite rods are used as vessel or container i.e. as a piece of manufacturing equipment - apparatus and not as the raw material or component part, and that, since 28-2-1982, the exemption was admissible only in respect of Item 68 goods used as raw material and component parts, the appellants were not entitled to the benefit of Notification No. 201/79 as amended by Notification No. 105/82 on and from 28-2-1982. 6.2. In the case of Kerala Electric Lamp Works Ltd. v. Collector of Central Excise, Cochin re....