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2006 (2) TMI 542 - AT - Central ExciseCenvat/Modvat - Inputs - process of manufacture or not - denied Modvat credit in respect of gases used for various purposes of cutting of Iron & Steel products - HELD THAT:- In Punjab & Haryana High Court in the case of CCE, v. National Fertilizers Ltd.[2001 (10) TMI 111 - HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH], maintenance and overhauling of machinery is an integral part in the process of production. Therefore, the decision of the Larger Bench, rendered in the case of in CCE v. Modi Rubber Ltd. [2000 (5) TMI 64 - CEGAT, NEW DELHI], holds that lubricating oils and greases used for the purpose of lubricating the machines and machinery is to be taken as a process for the manufacture of final product, as it is essential for their working and integrally connected with the manufacture. In the result, applying the ratio of the Punjab & Haryana High Court judgment noted supra, which in turn refers to two Supreme Court judgments, and by following the ratio of the Larger Bench judgments rendered in Modi Rubber Ltd. and Union Carbide Ltd. [1996 (6) TMI 308 - CEGAT, NEW DELHI-LB], the appellant’s plea is required to be accepted. The inputs viz. Welding Electrodes, Oxygen Gas and Acetylene Gas used for welding the punctured pipes carrying the hot sugar juice should be treated as part of process of manufacture and hence they are eligible inputs for the manufacture of the final product. The appeal is allowed with consequential relief, if any. Thus, the impugned order is set aside and the appeal is allowed with consequential relief, if any.
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