1998 (5) TMI 418

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....s that go into the manufacture of GP Cylinders shall be admissible to Modvat credit or not. 2. Shri S. Srivastava, ld. JDR submits that GP Cylinders are captively used in the manufacture of printed laminated plastic film. He submits that Notification No. 67/91 exempts such cylinders as are used captively. He, therefore, submits that once these cylinders for sale are exempt, they will be covered by the provision of Rule 57C meaning thereby that no Modvat credit will be admissible to the inputs used in the manufacture of these cylinders. He refers to the decisions of this Tribunal in the case of Shivaji Works Ltd. v. C.C.E. - 1990 (50) E.L.T. 50 and Mysore Kirloskar Ltd. v. C.C.E. -1990 (50) E.L.T. 175 and submits that this Tribunal held tha....

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.... noticed that sand moulds are not marketed as such. He referred to Paras 14 and 16 of this judgment to support his contentions. He also referred to the judgment of the Hon'ble Madras High Court in the case of Ponds India v. C.C.E. reported in 1993 (63) E.L.T. 3. In Para 23 it held that the case law laid down in Shivaji Works Ltd. and Mysore Kirloskar Ltd. was no longer good law. On the question of whether the cylinders are a part of machinery, the Chartered Accountant referred to the Larger Bench decision of this Tribunal in the case of Union Carbide India Ltd. v. Collector of Central Excise, Calcutta-I reported in 1996 (86) E.L.T. 613 holding that if the cylinders are parts, they are not included in the exclusion clause of Rule 57A of ....

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....astings. We also note that the question of sand moulds being used in the manufacture of steel castings came up for consideration before the Larger Bench of this Tribunal in the case of Rama Krishna Industry. The Tribunal after examining the various rules particularly Rule 57C and Rule 57D(2) held that sand moulds no doubt for sale are exempt but in the process of steel castings, they are intermediate products and therefore, are not-governed by Rule 57C alone but are to be considered in the light of the provisions of Rule 57D(2) and held that resins and other chemical used in the manufacture of sand moulds will be eligible to Modvat credit. We, therefore, agree with the contention of the ld. Chartered Accountant that the law set out in the c....