Per Justice U.L. Bhat: These appeals have been heard together and are being disposed of by this common order as they involve common questions of law. The appeals E.601/90, E.737/90 and E. 19/91 were referred to a larger Bench by the Western Regional Bench by an order reported in 1993 (68) ELT 452. This was followed by reference of appeal E.49/92 by the Eastern Regional Bench by an order reported in 1993 (68) ELT 603. The other appeals were referred by brief orders. We have heard learned counsel appearing for the various appellants Shriyuts Lakshmi Kumaran, R.C. Gupta, Arun Mehta, S.K. Bagaria, K.K. Kapoor, T. Gunasekaran, G. Prabhakara Sastry, C. Willingdon and the Senior Departmental Representative, Sri Sanjeev Sachdeva.

2.The respondent in Appeal E.332/94 and the appellants in other appeals are manufacturers of excisable final products. They availed modvat credit in respect of certain goods claimed as inputs as defined in Rule 57A of Central Excise Rules, 1944. The jurisdictional Assistant Collectors disallowed modvat credit. In the case relating to appeal E.332/94, the Collector (Appeals) set aside the order, holding that the respondent was entitled to benefit of modvat credit while the Collectors (Appeal) in the other cases confirmed the orders disallowing the benefit of modvat credit. In a few of the cases, modvat credit was disallowed on the ground that the goods in respect of which credit was claimed were spare parts of machinery which attract the exclusion clause (i) of explanation to sub-rule (1) of Rule 57A of the orders. In some of the cases, it was held that the goods claimed to be inputs were not used in or in relation to the manufacture of final products. The Collector (Appeals) took the contrary view in one of the cases as indicated already.

3. The particulars of the cases are as follows:-

4. Resolution of the controversy in these appeals depends on the correct understanding of provisions of Rule 57A relating to Modvat Credit Scheme. The scheme enables manufacturers of specified final products to avail credit of specified duty paid on specified goods (referred to as "inputs"") used in or in relation to the manufacture of the said final products and to utilise such credit towards payment of excise duty leviable on the final products under the Central Excises and Salt Act, 1944 (for short, the Act) or under any other Act as may be specified. The provision is subject to the provisions of the other Rules in the section and the conditions and restrictions that may be specified. Relevant port