TaxTMI 
TaxTMI 
1998 (6) TMI 247
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....b-heading No. 96.02. The assessee filed the declarations under Rule 57Q. The A.C. held that Modvat credit was not admissible on the parts of Air Conditioner and advised them not to take the Modvat credit on the parts of Air Conditioning Plant. The Commissioner (Appeals) held that the adjudicating authority erred in, (i) ignoring the fact that the slightest defect in such a product could be hazardous to human life; (ii) in misinterpretating the relevant statutory provisions, and (iii) in reaching findings which were self contradictory, which ignore the factual position and which were against the spirit and language of the legal provisions and set aside the A.C's order. 3. Department's contention is that under Rule 57Q of the Central ....
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....r vaccum to prepare the gelatine solution. (c) Dyes and opacifants are added to the gelatine solution in the hot water jacketed feed tanks. (d) Rows of stainless steel pins are dipped into the gelatine solution for the capsules being moulded. The dipping time is controlled by special cams. (e) The Cap and Body pin Bars rise to the upper deck as the gelatine "sets" on the Pins. Pin bars then travel on the upper and lower decks on which controlled quantity of conditioned air is blown on capsules for drying. (f) These pins are later rotated for an even spread of gelatine on the pin's surface. This also ensure proper `dome' thickness. Then, the capsule halves are dried, in a special section of the machine, with p....
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....petition with established foreign manufacturers, with substantial export, could not be possible. Therefore, the factory premises of the appellant company have all along been equipped with machines to maintain humidity and temperature control, falling under sub-heading 8415.00. The assessee filed necessary declaration in terms of Rule 57T and claimed Modvat credit of duty allowed under Rule 57Q ibid. This was done on 31-5-1994. He further submitted that manufacture of capsules will be impossible if the parameters of temperature and humidity at various stages of manufacture are not kept under control. The extracts of Technical Literature from U.S.A. were given to show that air-conditioning equipments like gas compressors with motors, air hand....
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....ufacture" takes in within its compass, all processes which are directly related to the actual production.' and the Hon. Supreme Court has in the case of Collector of Central Excise v. East End Paper Ind. reported in 1989 (43) E.L.T. 201 (S.C.) has referred to the observations of the Supreme Court in the case of J.K. Cotton Spinning and Weaving Mills Ltd. - 1965 (16) STC 563 (S.C.) as follows and adopted the principle for Central Excise purposes : "4. ... manufacture of goods should normally encompass the entire process carried on by the dealer of converting raw materials into finished goods. Where any particular process, this Court further emphasised, is so integrally connected with the ultimate production of goods that, but for that ....