TMI Blog1997 (9) TMI 255X X X X Extracts X X X X X X X X Extracts X X X X ..... e manufacture and are used as components/accessories for the efficient functioning of the kilns/furnaces, are to be extended the benefit of Modvat credit in view of the explanation 1(b) under Rule 57Q. On this contention, the Commissioner held that the Modvat credit has been taken on refractories prior to 16-3-1995 when these were not specified as capital goods under Rule 57Q(1). The Commissioner further held that these are used in kilns-lining purpose only. He disallowed the Modvat credit amounting to Rs. 10,37,606/-. 2. The facts of the case are that the appellants are engaged in the manufacture of iron and steel products. For heating sheets, arc furnace is used. Arc furnace is lined with the refractories. A dispute arose whether the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enied is part of the furnace; that furnace is a machinery or a plant. He submits that the exclusion clause under Rule 57A covers only machines, machinery, plant, equipment, apparatus, tools, or appliances etc. and not parts or spares thereof. He submits that since parts and spares of the articles included in exclusion clause are not covered, therefore they are inputs for the purpose of Rule 57A. In support of this contention, he cites and relies upon the decision of this Tribunal in the case of Union Carbide India Limited [1996 (86) E.L.T. 613] and in the case of Ramakrishna Steel Industries Limited [1996 (82) E.L.T. 575]. He submits that the goods were declared in the declaration filed under Rule 57G as well as in the declaration filed und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, were eligible to Modvat credit as inputs under Rule 57A. We also note that the Tribunal had in a number of cases cited by the appellants held that the amendment brought about by the Government of India on 16-3-1995 was in the nature of clarification and was applicable retrospectively. The only difference is that whereas the refractories were being treated as inputs prior to 16-3-1995, in view of the fact that they were not specifically covered by the exclusion clause under Rule 57A, they are now specifically covered by the exclusion clause under Rule 57Q. Since the refractories both prior to 16-3-1995 or on after 16-3-1995 are modvatable in accordance with the decisions cited and relied upon by the appellants, we hold that the Modvat c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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