TaxTMI 
TaxTMI 
2002 (4) TMI 123
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....e value of the photocopier and duty of excise is paid accordingly. The department, by two show cause notices proposed to deny Modvat credit of the CVD paid on the toners cleared along with photocopiers during June, 1998 - June, 1999. The proposal was contested on various grounds. One of the grounds was that toner was an accessory of photocopier and hence eligible for Modvat credit in terms of Rule 57B(1)(vi). The jurisdictional Dy. Commissioner of Central Excise, who adjudicated the dispute, found toner to be an accessory of photocopier but disallowed the Modvat credit on the basis of a finding that toner was not a part of photocopier and was not used in or in relation to the manufacture of photocopier. He held it to be a consumable like pe....
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....fine, black resinous powder used in electrostatic imaging process to make an electrostatic image readable; the toner is either deposited directly on coated paper or transfer from a charged surface to ordinary paper, then fused to the paper by heating." Ld. Counsel suggests yet another analogy by submitting that the toner is to the photocopier as a typewriter ribbon is to the typewriter. In the case of Kores (India) Ltd., Counsel points out, the Apex Court considered typewriter ribbon as accessory of typewriter. In CCE, Jaipur v. Lipi Data Systems [1995 (80) E.L.T. 542] cited by the Counsel, a Larger Bench of this Tribunal held that Modvat credit was admissible in respect of the ribbon fitted in a computer printer. Ld. Advocate contextual....
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.... decision in Devilog Systems (I) Ltd. v. CCE, Bangalore [1997 (89) E.L.T. 183] in support of the finding of the lower appellate authority that the toner was a consumable and not an essential part of the photocopier. He pleads for sustaining the order of the Commissioner (Appeals). 4. I have carefully examined the submissions. Admittedly, the toners were cleared along with the photocopiers and duty of excise was paid on the entire clearance with the value of toner included in the assessable value of photocopier. Modvat credit of CVD paid on toner has been denied by both the authorities below on the ground that the item is not an eligible input. The two authorities, however, are not concurrent on the finer reason for holding the toner to b....
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....inal products, whether directly or indirectly and whether contained in the final products or not, namely :- (i) ............................ (ii) ............................ (iii) ............................ (iv) ............................ (v) ............................ (vi) accessories of the final product cleared along with such final product, the value of which is included in th....
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....es (India) Ltd. (supra) seems to be apposite, there being no quarrel with the proposition that a toner is to photocopier as a ribbon is to typewriter. That the ribbon is an accessory of the typewriter is a fact found by the Apex Court in the cited case. This is supportive of the adjudicating authority's finding in the present case that toner is an accessory of photocopier. The Tribunal's finding in Wipro infotech case that a ribbon used in computer printer is an accessory of the printer can also claim support from the Apex Court's decision. The finding of the Tribunal's Larger Bench in Lipi Data Systems (supra) is to the effect that a ribbon used in a computer printer is a component/part rather than accessory of the printer. It seems to be ....