TaxTMI 
TaxTMI 
1999 (4) TMI 161
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....nder sub-heading 3926.90 of the Schedule to the Central Excise Tariff Act as claimed by the Assessee or under Heading 84.80 of CETA as claimed by the Revenue. The second issue involved is whether the benefit of Notification No. 217/86 is available to the impugned product which is used in the manufacture of abrasive stones. As the issues involved in all the appeals are same, these are being disposed of by one common order. 2. Shri A. Bhattacharya, learned Advocate, submitted that the Assessee manufacture abrasive stone and glazing media; that they manufacture plastic mould known as `Plastic Cavity' which is used for the manufacture of their final product; that the impugned goods are manufactured out of duty paid plastic sheets; that ....
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....rmediate goods Mould. He also relied upon the decision of the Larger Bench of the Tribunal in the case of M/s. Shri Ramakrishna Steel Industries Ltd. v. C.C.E., Madras - 1996 (82) E.L.T. 575 (T) in which Modvat credit was held to be admissible in respect of duty paid on chemicals or resin used in preparation of sand moulds in the process of manufacturing final product steel castings. He finally submitted that the charge of denial of Modvat credit of duty paid on raw materials used for the manufacture of plastic cavities was not raised in the show cause notice. He also referred to the Trade Notice No. 29/97 dated 12-4-1997 of Mumbai-1 Commissionerate in which it was clarified that Modvat credit on the inputs used in the manufacture of Moulds....
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....ng patterns; moulds for metal (other than ingot moulds), metal carbides, glass, mineral materials, rubber or plastics." 5. It is apparent from the wordings of Heading 84.80 that it covers moulds for (i) metal and metal carbides; (ii) glass or mineral materials; and (iii) Rubber or plastics. It is not in dispute that plastic cavity manufactured by the Assessee is used for manufacturing Abrasive Stone which is not mineral materials. The reliance placed by the Revenue on Explanatory Notes of H.S.N. does not help their case as the Assessee is not manufacturing grinding wheels. The learned Advocate has rightly submitted that the basic raw materials used by them are chemicals of various types but their final product cannot be called as a ....
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.... Tribunal held as under :- "We are here dealing with a case where inputs are not necessarily required to be used in the manufacture of final product, but are used "in relation to the manufacture" of the final product, which is an expression of considerably larger import. The words "in relation to the manufacture" are intended to set at rest all doubts. Where raw material is actually used in the main stream of manufacture of final product, that is, actually used in the physical or chemical process of manufacture, it is certainly an input used in the manufacture of final product. The doubt may arise only in regard to use of some article not in the main stream of the manufacturing process but in another stream of manufacturing something whi....