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TMI Blog2008 (4) TMI 94X X X X Extracts X X X X X X X X Extracts X X X X ..... & MS Plates (v) MS Rounds (vi) Paints & Varnishes (P & V) (vii) Mafrolite (viii) High Alumina Refractory Cement (ix) Aluminium Ferrules The credit was also denied on the ground that the invoices issued by Hindustan Petroleum Corporation Ltd. (HPCL) are not valid duty paying documents, in some cases copy of invoices was not submitted and in some cases invoices were not in the name of the appellant nor the same were endorsed. 2. First we take up the issue regarding the availability of credit in respect of 9 items as mentioned above. The contention of appellant is that these items such as Forged Products, Blooms, Billets, Chequered Plates, GC Sheets, Flats & MS Plates etc. are used in the manufacture of parts of capital goods in the fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich was denied on the similar ground :- "16. As regards other inputs, such as castings, rounds, plates etc. used for manufacture of machine parts, we note that the machine parts themselves being capital goods are exempted under Notification 67/95. However, following the cited decision of the Hon'ble Supreme Court in the case of Hindustan Sanitaryware (cited supra) and recognizing that machine parts are defined as capital goods for the pruposes of both Notification 67/95 as well as Rule 57Q, we are of the view that the appellants are entitled to exemption on the inputs under the Notification 67/95, when produced within the factory and they are entitled to Modvat credit when such inputs are procured on payment of duty from outside. In this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capital goods is essential for smooth running of plant with greater efficiency. In other words, the goods in question are essential supplement to the plant and machinery for use in manufacturing goods, for its greater efficiency and better results and thus, it is an integral part of the process with which the primary machines are engaged. Looked from these aspects, there is no impediment for the goods in question qualifying as capital goods eligible for Mod vat credit. 4. Consequently, such goods which are necessary for running of plant and up-keeping of the machinery directly involved in the manufacturing and products were held to be eligible to avail Modvat credit." 7. We find that the ratio that the above decision is applicable on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Mafrolite, High Alumina Refractory Cement and Aluminium Ferrules was denied on the ground that High Alumina Refractory and Mafrolite is used in the lining of the furnace as refractory material. We find that this issue is settled by the various decisions of the Tribunal in favour of the assessee. Refractory material is entitled for credit as held by the Tribunal in the case of Hindalco Industries Ltd. v. CCE, Allahabad reported in 1996 (88) E.L.T. 519 (Tribunal): In view of the above decision, the denial of credit is not sustainable, hence set aside. 11. In respect of denial of credit of Rs. 19,02,408/-, we find that there is no finding in this regard in the impugned order, hence it requires re consideration by the lower authority. In res ..... X X X X Extracts X X X X X X X X Extracts X X X X
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