2004 (9) TMI 255

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....tungsten wire and tungsten filament and vacuum gas filled bulbs falling under Chapters 81 & 85 of the Schedule to the Central Excise Tariff Act; that they availed of the Modvat credit of the duty paid on the inputs used in or in relation to the manufacture of tungsten filament/tungsten wire; that since 1999-2000, they also started manufacturing vacuum gas filled bulbs for which a separate hall had been constructed by them in the same factory premises; that they discharged duty liability whenever tungsten wire/tungsten filament are captively cleared to their bulb unit; that as they were paying Central Excise duty on tungsten filament/tungsten wire; which are used as inputs for the manufacture of bulb in respect of which no Modvat credit is a....

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....s of retail sale price not exceeding Rs. 20/- per bulb; that the said bulbs are partially exempted from payment of duty subject to the condition that no credit of the duty paid on inputs or capital goods, exclusively used in the manufacture of these goods, has been taken; that as the appellants are taking the Modvat credit of the duty paid on inputs, which finally go in the manufacture of bulbs, they are not eligible for the benefit of this notification. 4. We have considered the submissions of both the sides. It is not in dispute that the appellants are taking the Modvat credit of the inputs. The main contention raised by them is that the inputs, in respect of which they are availing the Modvat credit, are used in the manufacture of tun....

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....e manufacturing steel castings and machinery parts and the dispute was relating to the availment of Modvat credit on the inputs which have been used in the manufacture of sand moulds, which in turn were used in the manufacture of steel castings. The Larger Bench of the Tribunal has relied upon the decision of the Supreme Court in the case of J.K. Cotton Spg. and Wvg. Mills Co. Ltd. v. Sales Tax Officer, Kanpur, 1997 (91) E.L.T. 34 (S.C.) = 1965 (16) STC 563 wherein the Supreme Court has held that manufacture of goods should normally encompass the entire process carried on by the dealer of converting raw material into finished goods and where any particular process is so integrally connected with the ultimate production of goods that, but fo....