Y. K. Sabharwal, J.

( 1 ) M/s. Maruti Udyog Limited (for short `mul ) manufactures motor, vehicles. M/s. Bharat Seats Limited (for short `bsl ) a joint venture with MUL, manufactures seats for motor vehicles for exclusive supply to MUL. The seat is one of the inputs of the motor vehicles. The seat assembly consists of three parts. These parts are first manufactured by BSL and sold to MUL and thereafter are reissued by MUL to BSL for manufacture of seats on job-work basis after which BSL supplies the complete seats to MUL who uses it in the manufacture of their motor vehicles.

( 2 ) PRIOR to 21st January 1989 parts of seats used to be physically transported by BSL to MUL under a gate pass, MUL availed MODVAT credit on the basis of these passes. Thereafter the parts were physically resupplied to BSL under the procedure for the purpose of sending inputs to job works as per Rule 57f (2) of the Central Excise Rules (for short referred to as `the Rules hereinafter ). It is however, not in dispute that for the period after 21st January 1989 which is the relevant period in these petitions, parts of seats did not physically move from factory of BSL to that of MUL. Therefore, the question o

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