TMI Blog2015 (6) TMI 690X X X X Extracts X X X X X X X X Extracts X X X X ..... for the period from April,2005 to August, 2007, invoking the extended period. They have correctly declared the item as input to the department and availed 100% credit and also filed regular returns. As seen from the grounds of appeal at para-36, CERA carried out Audit in July 2004, August, 2008, and October, 2007, and internal audit of the department carried out audit in November,2003, March, 2005 and February, 2007 and February, 2008, no objection was raised either by CERA or by the internal audit. Considering it is only a question of interpretation and there is no suppression involved in this case. Therefore, the demand is also hit by limitation. - Appellants are eligible to avail 100% credit on the 'runner mass' as inputs. Accordingly, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered under the definition of capital goods. He submits that 'runner mass' is used in the runner path of the blast furnace, and it is coated on the flow path from mouth of the laddle where the molten metal flows out from the blast furnace. It is an input and not a part of the blast furnace. Therefore, the appellants have correctly availed 100% credit whereas both the authorities below have wrongly classified the 'runner mass' as part of the blast furnace. He relied upon the following decisions in support of his argument. - CCE, Bangalore Vs. Escorts Mahle Ltd. 2003 (154) ELT 321 (SC) - CCE Vs. Steel Strips Alloys Ltd. 2008 (232) ELT 395 (H.P) - CCE Vs. Steel Strips Alloys Ltd. 2008 (232) ELT 598 (H.P) - CCE Chandi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 'runner mass' which is a part of the blast furnace as rightly held by the lower authority and also show cause notice is rightly issued invoking extended period as the appellant has suppressed the facts. He relied upon the following case laws in support of his contention. - Balmer Lawrie Co. Ltd. Vs. CCE, Belapur 2014 (301) ELT 573 (Tri.- Mum.) - Lacto Cosmetics (Vapi) Pvt. Ltd. 2013 (30) STR 107 (Tri.-Ahmd.) 4. I have carefully considered the submissions of both sides and also examined the records. Prima facie, the issue relates to availment of credit on the item 'runner mass', whether it is to be treated as an input for manufacture of the final product and eligible for 100% credit or it is a part of the capital g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apours produced during the course of melting steel are eligible for modvat credit. 3. In respect of this contention that it is necessary to use such processes like Ramming Mass, the learned counsel appearing for the assessees drew our attention to a book titled as Electric Furnace Steel Making (American Institute of Mining) wherein while dealing with electric arc furnace refractories, it is stated on page 157 as under : It is well known that much of steel making and refining is concerned not only with the removal of carbon to steel chemistry ranges but also with the removal of phosphorus and sulfur to appropriately low values. Since phosphorus and sulfur are chemically acidic materials, their removal from the melt is effected b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e acid formed in the course of manufacture of steel. Hence, the judgment cannot be said to be, in any way, illegal or erroneous. The appeal is, therefore, dismissed. There shall be no order as to costs. 5. 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. 6. The above Apex Court decision was relied on by the Hon'ble High Court of Himachal Pradesh and Hon'ble High Court of P H in the case of CCE Vs. Steel Strips Alloys Ltd. (supra), held that ramming mass, foundry flux, mortar, ILR Mix and Castable powder etc. are used as layer in the furnace have been considered in the manufacture of final products and the manufacture ..... X X X X Extracts X X X X X X X X Extracts X X X X
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