2000 (9) TMI 378

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.... the exclusion, for the purpose of claiming Modvat credit under Rule 57A, whereunder he has held that it comes under Explanation in Notification No. 217/86. 2. The appellants are engaged inter alia in the manufacture of fuel gas falling under item 2711 of the CETA. By Notification 217/86 the Central Government inter alia exempted goods specified in column 2 of the Table thereof manufactured in a factory and used it in the factory of production in or in relation to the manufacture of final product specified in column 3. The amount paid during the period of dispute duty paid on raw naphtha for the manufacture of inter alia fuel gas and removed the goods within the factory of production for the manufacture of steam are specified in col....

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..... 613 (Tribunal) (at pages 626 - 628). He said that it is preposterous on the part of the adjudicating authority to hold fuel gas as a tool. He explained to us the meanings given by various dictionaries as to the term of the "tool" and how the order passed by the adjudicating authority is illogical and wrong in law. 5. The learned DR adopts the reasonings of the Commissioner. 6. We have considered the rival contentions. The question involved is whether the fuel gas can be treated as a tool, in terms of the Explanation of Notification 271/86. The said Explanation reads as under : "Explanation.- For the purposes of this notification, 'inputs' does not include : (i)        machines, mach....