AI Structured Summary
Not yet generated for this judgment
Judgment
Jawahar Lal Gupta, J.—The respondent-Corporation is engaged in the manufacture of ''machinery parts and metal containers''. It utilised Modvat credit of Rs. 1,46,063 on X-Ray films for the period from April 1,1996 to June 30, 1996 by treating it as an input for the manufacture of the final product. That adjudicating authority allowed the credit. Aggrieved by the order, the department filed an appeal. It was dismissed by the Commissioner (Appeals). A second appeal before the Tribunal met with the same fate. Hence, this petition u/s 35H(1) of the Central Excise Act, 1944 with the prayer that the Tribunal be directed to refer the following question for the opinion of this Court :-
"Whether Modvat credit on X-Ray films is admissible under Rule 57A of Central Excise Rules, 1944. When X-Ray films are being used as equipment or appliances for testing and such equipment and appliances falls under the exclusion clause of Rule 57A particularly when the X-Ray films are not used in or in relation to the manufacture of the final product?"
There is a delay of 131 days in filing the petition. An application for condonation has been filed.
We have perused the application. We have also heard the Counsel on merits. It is contended by Mr. Cumber that an X-Ray film is not an essential input for the manufacture of machinery parts and metal containers.
Admittedly the respondent-Corporation is using the X-Ray films and the X-Ray machine to check the joints in the machine parts and containers being manufactured by it. It is by the use of this process that the quality of the product is maintained. The X-Ray films are, thus, an essential input for the final product manufactured by the respondent-Corporation. This is precisely the view that has been taken by all the three authorities. There is no violation of any provision of the statute.
Thus, even if the delay in filing the petition is overlooked, there is no merit in this petition.
It is, consequently, dismissed in limine.