2001 (9) TMI 848

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....not. 2. The lower authorities have considered the said items to be tools and hence covered by the exclusion clause. On the other hand the appellants' contention is that the said items are attached with the drill machine and used for drilling a hole in the blast furnace. The same get consumed in the blast furnace and the same are required to be replaced by fixing to a new drill bar for the next tapping. As such the same cannot be treated as tools so as to deny them the benefit of Modvat credit. It is their contention that the goods are admittedly used in relation to the manufacture of the final product. As such they claimed for the Modvat credit under the provisions of Rule 57A as also under Rule 57H in respect of the stock lying in th....

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....hole unit capable of performing functions and not parts of such machines, machinery, appliance, tools etc. As there is no dispute in the present case that 'grinding wheels' in question are not such complete units which can perform functions independently, they do not come within the scope of exclusion clause contained in explanation to Rule 57A. Therefore, the only requirement to be satisfied is that they are used in or in relation to the manufacture as envisaged in the main part of Rule 57A. There is no dispute that the 'grinding wheels' in question are parts of grinding machines and these are used for smoothening the surface of components. Therefore, they clearly perform as function in relation to the manufacture of the goods. We, therefo....