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2003 (5) TMI 58 - SC - Central ExciseCenvat/Modvat Credit - Whether on the facts and in the circumstances of the case the appellate Tribunal is right in law in holding that the applicants are not eligible to Modvat Credit in respect of Ramming Mass, Fibre glass and filter mesh used in or in relation to the manufacture of pistons on the ground that they are covered under Proviso to Rule 57A of the Central Excise Rules. - Held that:- In order to appreciate the controversy, the relevant facts are that the assessees claimed benefit of Modvat credit in respect of Ramming mass, Fibre glass and Filter mesh. These items are used in the process of manufacture of steel and without the use of these items the end product cannot be produced. The assessees in these cases are engaged in the manufacture of items of steel like pistons in the Escort's case. The manufacture takes place in electric arc furnace refractories. It is submitted on behalf of the assessees that during the course of manufacture steel is melted at a very high temperature. Steel produces acidic vapours when melted at such a high temperature. To contain the vapour and neutralise them, chemicals like dolomite or magnesite are used during the course of manufacturing process. Ramming Mass, fibre glass and filter mesh are processes in which chemicals are used to line the furnaces to neutralise the effect of acidic vapours produced during the course of melting steel. Unless these chemicals are used, the furnace may burst - Manufacturing process being the same in these cases, we hold that the assessees are entitled to Modvat credit on Ramming Mass, Fibre glass and filter mesh - Decided against Revenue.
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