1993 (7) TMI 365

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....They handed over a technical drawing showing the structure of the diesel generators manufactured by them. The disputed inputs, namely. Control Panel and Circuit Breakers are actually component parts of the generators, it was contended. Though these items are procured by them from other manufacturers/suppliers, that does not mean that they are not component parts of their final products. Without these items, the generators cannot be put to use and they are essential for their functioning. They enter into contracts with their customers who include a number of Government Departments and in terms of such contracts they are required to supply the generators complete with control panels and circuit breakers. The price of the diesel generating set....

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....nsels. He referred to the findings of the Assistant Collector which have been upheld by the Collector of Central Excise (Appeals) in his impugned Order-in-Appeal. He generally supported the impugned order. 4. I have considered the submissions. I have also perused the relevant papers. The Assistant Collector has held that irrespective of the function performed by inputs in the diesel generating set and however essential it might be for the same, this cannot be said to be used in or in relation to the manufacture of the generating sets as required under Rule 57A of the Central Excise Rules 1944 and accordingly not treatable as inputs under the said rule. This finding is totally untenable. It had been submitted before the authorities below an....

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.... was done. The Tribunal found, and there was material for the Tribunal to do so, that the market in which the articles were sold were paper packed and wrapped in paper. Therefore, anything that enters into and forms part of all the end product must be deemed to have been used in completion of manufacture of the end product." The Honourable Court then referred to their own decision in J.K. Cotton Spinning and Weaving Mills Co. Ltd. v. Sales Tax Officer : 1965 (16) STC 563 where the scope of the expression 'in the manufacture' was considered. They observed that where any particular process is so integrally connected with the ultimate production of inputs, that but for that process manufacture or processing of goods would be commercially....