GRASIM INDUSTRIES LTD. Vs. CCE

JUDGEMENT

(1.) THIS stay application is directed against the order in appeal dated 25.7.06 which upheld the order in original that denied the modvat credit to the appellants on the welding electrodes consumed by them in their factory.

(2.) THE issue involved in this case is denial of modvat credit to the appellants on welding electrodes which are used by them for fabrication of machines and for repair and maintenance of machinery of the plant. It is the contention of the appellants that the said welding electrodes are considered as inputs. Since the issue involved in this case in a narrow compass, the application for pre -deposit of duty and penalty is allowed and appeal itself taken up for disposal.

(3.) THE learned Counsel appearing on behalf of the appellants states that the issue is now covered by the decision of the Division Bench of the Tribunal in the case of JK Cement Works and Ors. v. CCE [Final Order No 604 -609/06 dated 26.10.2006]. The Division Bench had relied upon the order of the Hon'ble High Court of Rajasthan in Central Excise Reference No. 9/2002.