1985 (7) TMI 95

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....ie-cast-rotors which go in the manufacture of the end product, namely, electric motors. 3. The petitioner was permitted to avail of the proforma credit under Rule 56A of the Central Excise Rules, 1944, (Rules) in respect of the electrical stampings used in the manufacture of electric motors. The petitioner-company itself used to manufacture die-cast-rotors which are necessary for the electric motors. It so happened that during 1981-82 it did not have the necessary capacity to manufacture die-cast-rotors sufficient for the manufacture of the required number of electrical motors. In these circumstances, the petitioner-company entered into a contract with M/s. Eltex Engineering Corporation, Coimbatore, for supplying the die-cast-rotors usin....

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.... exemption in respect of the excisable goods which could be availed of under the Rules. Under the same notification it is provided that for the purpose of claiming exemption, the procedure set out in Rule 56A shall be followed. Item No. 7, in the said notification is Electric Stampings and laminations, all sorts. One of the conditions for claiming exemption under the said notification is that the inputs specified in Column No. 3 of the Table, annexed to the notification, should be used in the manufacture of final products specified in the corresponding entry in Column No. 5. It can be seen from the Table that electrical stampings under Entry-7 form the component parts or the inputs specified in the manufacture of the final products, name....

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....A, that the electrical stampings which go out of the factory for whatever purpose and is supplied to Eltex Corporation comes back to the petitioners factory as a finished product which, by itself, is an excisable item under the Act, and in these circumstances, the petitioner is not entitled to avail of the proforma credit facility, as provided under the Rules. The endorsement issued by the Asst. Collector (Annexure-E), does not deal with the case put forward by the petitioner and the Asst. Collector makes a distinction between die-cast-rotors used as a component by the petitioner company in the manufacture of electric motors, and the electrical stampings going out of the factory and coming back in the shape of die-cast-rotors. 8. The ....