2004 (6) TMI 517 - AT - Central Excise

Summary

Issues:
Appeal against Commissioner (Appeal)'s Order regarding Modvat credit for Angles and Channels used in mould box manufacture.

Analysis:
The appeal concerns the eligibility of Modvat credit for Angles and Channels used in the manufacture of mould boxes. The Commissioner (Appeal) restricted the credit due to the re-use of mould boxes, arguing they are akin to capital goods and not directly related to final product manufacture. The appellant, however, argued that the mould boxes are essential for casting production, making them eligible inputs under Rule 57A. Citing precedents such as Shri Ramakrishna Steel Industries Ltd. and CCE, Mumbai v. Mukund Ltd., the appellant contended that inputs used in the manufacturing process should qualify for Modvat credit. The appellant also referenced the Andhra Pradesh High Court judgment in Sirpur Paper Mills Limited v. CCE, Hyderabad to support the claim that various materials used in machinery for manufacturing were deemed eligible for Modvat credit.

Upon review, the Tribunal found the Commissioner's decision lawful and appropriate. Drawing on the cited judgments, the Tribunal noted that inputs utilized in sand mould manufacturing, lining furnace walls with refractory bricks, and using wire mesh and woollen felt in paper production machinery were all deemed eligible for Modvat credit. Consequently, the Tribunal rejected the appeal, affirming the Commissioner's order and emphasizing the consistency in granting Modvat credit for inputs used in diverse manufacturing processes.