9911796707
TMI Blog1998 (4) TMI 395X X X X Extracts X X X X X X X X Extracts X X X X ..... ]. - The Appellants claimed the benefit of Modvat credit under Rule 57Q for (i) Insulyte II, (ii) Whytheat-K which was high Aluminium mortar to line the furnace of bricks (iii) liquid Binders and (iv) Calundum materials which again were used for joining the bricks in the furnace. The Assistant Commissioner observed that the goods were essentially refractory items, that they were used for the mai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... puts under Rule 57Q. He cited another judgment in the matter of Synthetics and Chemicals Ltd. v. C.C.E., Kanpur reported in 1997 (89) E.L.T. 793 wherein the black lay flat tubing being lining materials of tanks was held to be so eligible. As regards the objection that the inputs were classifiable under a chapter different from those of the machines; he relied upon the clarification given by the Mi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ials for erection and fabrication of blast furnace were denied Modvat credit under Rule 57Q. 4. I have carefully considered the submissions made by both sides. It has been brought out in the Ministry's clarification cited that where the capital goods claimed were capable of falling under the ambit of clauses (a) to (c) of explanation, they should be so allowed, even when the specific descrip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chinery in which it is used. The EXIM Policy 1988-89 defined accessories as a part or assembly that contributed to the effectiveness of a piece of equipment without changing its basic functions. 6. The furnace is used for bringing out a change in the material subjecting it to intense heat. The refractory lining is an essential part of the furnace. The refractory and calundum are used either ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cement and steel structure used in fabrication of blast furnaces was denied. The judgment followed the Supreme Court observation in J.K. Cotton Spinning and Weaving Mills in which it was held that where materials were used for construction of "plant" (emphasis added) could not be said to be used as plant in the manufacture of goods. This judgment would not apply to this case as in this case it is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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