2007 (7) TMI 504 - AT - Central Excise

Summary

Issues involved:
1. Disallowance of Modvat Credit for Zinc and Caustic Soda.
2. Admissibility of Modvat Credit for Lithrex EP II.
3. Disallowance of Modvat Credit for Steerol-C6.

Analysis:

1. Disallowance of Modvat Credit for Zinc and Caustic Soda:
The appeal involved three items for which Modvat Credit was disallowed. The amount of Rs. 792 for Zinc and Caustic Soda was not pressed by the ld. Counsel, resulting in the confirmation of the denial of credit for this item.

2. Admissibility of Modvat Credit for Lithrex EP II:
The issue of Modvat Credit admissibility for Lithrex EP II arose, with the ld. Counsel arguing that it was a brand name declared as Lubricating Oil and Grease. The Tribunal agreed with the ld. Counsel, holding that Modvat Credit for Lithrex EP II is admissible based on the argument presented.

3. Disallowance of Modvat Credit for Steerol-C6:
Regarding Steerol-C6, the credit was denied due to the absence of reference to the parent invoice in the dealer's invoice and RG-23D Register. The ld. Counsel clarified that the invoices were from the main manufacturer directly consigned to the appellants, not the dealer. The Tribunal found this ground for denial invalid, ruling that the credit for Steerol-C6 is admissible.

In conclusion, the appeal was partly rejected and partly allowed based on the specific issues addressed for each item. The Tribunal confirmed the denial of Modvat Credit for Zinc and Caustic Soda, allowed the credit for Lithrex EP II, and deemed the credit for Steerol-C6 admissible due to the clarification provided by the ld. Counsel.