SHRIRAM PISTONS AND RINGS LTD. Vs. CCE

JUDGEMENT

(1.) In these appeals at the instance of the assessee challenge is against the order passed by the Commissioner (Appeals) dated 17.4.2003. The issue to be considered is whether the modvat credit taken by the assessee was in contravention of Rules 57AA and 57BB of the Central Excise Rules, incidentally, the question, whether the piston ring set cleared by the assessee has undergone a manufacturing process.

(2.) The appellants are, inter alia, engaged in the manufacture of pistons, piston rings, pins and engines valves falling under Chapter sub -heading No. 8409.00 of the Central Excise Tariff. These items are supplied to various OE manufacturers who further make use of them in the manufacture of final products, namely, parts of motor vehicles etc. In is the case of the appellants that the piston rings manufactured by them is tailor made to specific requirements of the OE manufacturer -buyers. One particular set of rings can be made use of only for a particular vehicle model. For example piston rings made and meant for Maruti Zen model vehicles cannot be made use of in Maruti Esteem model.

(3.) The appellants import piston rings from aboard. After testing the conformity with reference to specifications, they undertake match test of the rings manufactured by them. Once the rings are assembled together to form a piston rings set, they supply them to the concerned vehicle manufacturer under whose specifications such set have been manufactured by the appellants.