GHAZIABAD FORGINGS P. LTD. Vs. CCE, GHAZIABAD

JUDGEMENT

(1.) THIS order will dispose of stay applications as well as the appeals. Since the issue regarding the entitlement of the modvat credit in respect of the furnace oil used as fuel in the manufacture of non -dutiable goods stands already covered in favour of the appellants by the Tribunal's judgment in Indore Steel and Iron Mills Ltd. v. CCE, Indore, 2002 (51) RLT 174, the stay applications of the appellants are allowed. With the consent of both sides, I proceed to decide the appellants' appeals. The above captioned appeals have been directed against the common order -in -appeal dated 19.1.2002 vide which the Commissioner (Appeals) has affirmed the orders -in -original of the Assistant Commissioners/Deputy Commissioners disallowing modvat credit of different amounts for different periods with penalties as detailed in the impugned order itself.

(2.) THE issue as to whether the appellants are entitled to claim modvat credit for the disputed periods on the furnace oil used as fuel in the manufacture of the dutiable final product as well as exempted final products cleared under Rule 57F(4) Rules, already stands covered by the Tribunal's judgment in Indore Steel & Iron Mills Ltd. v. CCE, Indore, 2002 (51) RLT 174 wherein in similar circumstances, it has been ruled with the assessee would be entitled to take the credit and neither the credit taken in respect of fuel is to be reversed nor the amount @ 8% of the value of the exempted final product to be debited in view of the specific exclusion of the fuel from the provisions of Rule 57CC of the Rules. The law laid down in this case very aptly applies to the facts of this case. Therefore, the appellants had rightly availed modvat credit of the disputed amounts during the disputed periods and they could not be ordered to reverse the same or pay back along with penalties. The impugned order of the Commissioner (Appeals), therefore, cannot be sustained being contrary to the law laid down by the Tribunal in the above case and the same is set aside. In view of the discussion made above, the impugned order -in -appeal of the Commissioner (Appeals) is set aside. All the appeals of the appellants are allowed with consequential relief, if any, permissible under the law.