1997 (11) TMI 167

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.... for the Respondent. [Order per : G.R. Sharma, Member (T)]. -  The short point for determination in the present appeal is whether Modvat credit will be admissible on locks and padlocks provided with the transformers under Rule 57A. 2. Shri D.K. Nayyar, ld. JDR submits that the respondents herein are engaged in the manufacture of transformers and were availing credit of duty paid....

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....e eligible for benefit of Modvat credit. He refers to the decision of this Tribunal in the case of Collector of Central Excise v. Standard Alkali, reported in 1992 (59) E.L.T. 127 (Tribunal) in which this Tribunal had held that the first condition for inputs is; it must be used in or in relation to the manufacture of the final product. He submits that once this test is passed then the second test ....

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.... oils in the transformers. Once the transformers are designed in such a way as to use padlocks and locks then it become an integral part of the transformers and can be termed as an input if it is so commercially supplied in all cases. However, one condition shall have to be specified before allowing the claim that the costs of padlocks and locks is included in the value of the transformers for pur....