H.E.G. LTD. Vs. CCE, BHOPAL

JUDGEMENT

(1.) HEARD both sides. Appellants filed this appeal against the order in appeal whereby the benefit of MODVAT credit in respect of refractory blocks and hard boards was denied on the ground that these are not inputs.

(2.) THE contention of the appellants is that graphite blocks are used in the manufacturing process as these are placed in the furnace and these blocks lose their property after a few charges of the furnace. The hard board was used to partition the furnace at the time of loading of furnace with baked carbon electrodes and these boards are consumed during the process of heating of electrodes up to 3000 degrees celsius. Therefore, the both items are used in the manufacture of final product. Appellants relied upon the decision of the Tribunal in the case of Hindalco Industries Ltd. v. Commissioner of Central Excise, Allahabad, reported in : 1996 (88) ELT 519 (T) : 1996 (62) ECR 543 (T) whereby MODVAT credit of Refractory bricks used for lining of furnaces was allowed as input under Rule 57A of the Central Excise Rules, 1944 and the Tribunal rejected the Reference filed by the Revenue.

(3.) REVENUE retracted the findings of the lower authorities. After going through the manufacturing process of final products, we find that the goods in question are used in the manufacture of final product, hence, are entitled for the benefit of MODVAT credit as inputs under Rule 57 -A of the Central Excise Rules, 1944. The impugned order is set aside and the appeal is allowed.