TaxTMI 
TaxTMI 
1996 (4) TMI 245
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....observed that non-fixing of such glass on the set did not interrupt the functioning or operation of the TV sets. He held that such glass was not an essential component for functioning of the sets. He denied the modvat credit and confirmed the demand of Rs. 28,306/- on Uptron India. In the proceedings before him the Collector (Appeals) observed that such glass was an optional accessory which a buyer may use depending upon his needs. He upheld the original order in toto giving rise to this appeal. 2. The case for the appellant was argued by Advocate Shri R.N. Srivastva. Shri Ram Sharan, JDR appeared for the revenue. 3. Ld. advocate referred to the instructions manual of the Television sets manufactured by the appellant wherein....
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....music can be heard with one speaker also but the claim on other speaker as eligible inputs cannot be denied on these grounds. In support of his argument, ld. advocate cited the following judgments : (1) CCE v. Lipidata Systems - 1995 (80) E.L.T. 542 (Tri.) (2) BPL Sanyo Ltd. v. CCE - 1996 (82) E.L.T. 337 (Tri.) (3) Addisons & Co. Ltd. v. CCE - 1990 (48) E.L.T. 281 (Tri.) (4) Singh Alloys & Steel Ltd. - 1993 (66) E.L.T. 594 (Cal.) (5) CCE v. Eastend Paper Industries - 1989 (43) E.L.T. 201 (SC) (6) CCE v. Salem Steel Plant - 1992 (61) E.L.T. 706. 4. Ld. JDR appearing for the department reiterated the beliefs expressed in the original and the appellate order. He stated that at the mate....
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....his amendment, the scope of the term inputs was expanded to cover goods used directly or indirectly and also to cover those goods which were used up in the process and were therefore not visible in the end product but the use of which was essential for the completion of the manufacture of the final goods. The amendment also clubbed accessories with the inputs provided the value thereof was included in the assessable value of the final product. With this amendment most of the problems which had arisen in the admissibility of Modvat would be settled. It may not be correct to argue that by the very introduction of this amendment, those goods which were not visible in the final products or those goods which were accessories could be deemed out ....
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....art of the manufacturing process must be deemed to be raw material or component part of the end product and must be taken to have been used in completion or manufacture of the end product. This sentiment has been recorded in the judgment of the Larger Bench of the Tribunal in the case of Lipi Data Systems. In this case it was held that essentiality of accessories for the functioning of the article cannot be conclusive for deciding the admissibility of Modvat. The relative test was whether the same accessory was used in or in relation to the manufacture of final product or not. In the cited case of BPL Sanyo Ltd. also the Tribunal held that `to be an accessory of the final product is not its qualification for Modvat purpose'. 7. I fi....