TaxTMI 
TaxTMI 
1990 (9) TMI 223
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.... is the subject-matter of this appeal. 2. The appellants filed a classification list effective from 27-4-1982 claiming exemption from duty in terms of Notification 201/79-C.E., dated 4-6-1979 and Notification 58/82 dated 28-2-1982 in respect of the following products, falling under T.I. 68 : (1) Air bags/curing bags (2) Bladders (3) Dip solution 3. The benefit of set-off of duty under Notification 201/79 was denied by the Assistant Collector on the ground that the items are sought to be used within the factory by paying duty at nil rate in terms of the notification. 4. The contention of the appellants regarding the benefit of Notification 95/79 as amended by Notification 58/82 in respect of synthetic rubber, carbon black a....
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....79 as amended by Notification 58/82. 7. During the course of the arguments on 28-6-1990 it appeared to us that for a proper decision in this matter we should understand the actual process of manufacture of tyres as well as air-bags, curing bags and bladders etc. We therefore direct (sic) the learned advocate to prepare technical write-up on the process of manufacture of air bags, tyres, etc. supported by photograph and samples. Such write-up to be prepared in association with a Central Excise Officer to be deputed by the Collector of Central Excise, Bangalore. Accordingly such technical write-up along with two flow charts, countersigned by the Supdt. of Central Excise were placed before us during the hearing on 28-8-1990. (One flow chart....
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.... BEAD : In this department, high tensile steel wires are coated with rubber compound and then made into circular rings for different sizes. Then these preformed rings or beads are wrapped with coated fabric for better consolidation and then sent to tyre building. 07. TYRE BUILDING/ASSEMBLY : Here green tyres are made by assembling the various components received from other departments like treads, plies in pocket form, beads, etc., on cylindrical forms known as building drums. 08. GREEN TYRE PREPARATION : Here green tyres are painted outside with rubber solution for better moulding and inside the green tyre with lubricant for easy removal of tyres after moulding operation. 09. BLADDERS AND AIR-BAGS : The bladders butyl co....
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....1 of 1944), as is specified in the corresponding entry in column (4) of the said Table from so much of the duty of excise leviable thereon as is equivalent to the amount of - (a) the duty of excise plus special duty of excise, or, as the case may be, (b) the additional duty leviable under section 3 of the Customs Tariff Act, 1975 (51 of 1975), already paid on the goods of the description specified in the corresponding entry in column (3) of the said Table (such goods being hereinafter referred to as "inputs") and falling under such Item No. of the aforesaid First Schedule as is specified in the corresponding entry in column (2) of the said Table : Provided that - (i) that inputs specified in column (3) of the said Table against ....
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....e like. 10. 15C Starch 1E Glucose and Dextrose 11. 11A Petroleum Coke 11C Calcined Petroleum Coke 12. 33B Bare copper wires 26A Strips or other manufactures of copper. 13. 33B Bare Aluminium wire 27 Aluminium strips in any form or size. 14. 30 Electric motors, rotors, stators 29A Refrigerators, air-conditioners and refrigerating and air-conditioning appliances and machinery. 15. 30 Rotors and stators 29A(3) Compressors 16. 30 Electric motors, rotors, stators 33 Electric fans 17. 30 Electric motors, rotors, stators 33C Domestic electrical appliance not elsewhere specified. 18. 33 Electric fans 29A Refrigerato....
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....icted or narrow scope, and requirement of Notification 201/79 is that T.I. 68 goods which are referred to as inputs are used in the manufacture of other excisable goods. This has been the view of the Tribunal in the case of Hindustan Lever Ltd., Bombay v. C.C.E., Bombay [1985 (19) E.L.T. 96]. In the case of C.C.E., Bhuvaneswar v. Titaghur Paper Mills [1985 (21) E.L.T. 901], the Tribunal has held that there is no authority to say that an input or raw material must go directly into the finished products. As long as it is consumed and utilised in a way that results in the production or manufacture of the article on which the system is engaged, it is a raw material and is an input for that finished product for the purpose of Notification 201/79....