LAWS(P&H)-2004-12-92

OSWAL STEELS Vs. COLLECTOR OF CENTRAL EXCISE

Decided On December 17, 2004
OSWAL STEELS Appellant
V/S
COLLECTOR OF CENTRAL EXCISE Respondents

JUDGEMENT

(1.) On an application filed by the peti-tioner-assessee under Section 35G(1) of the Central Excise Act, 1944. (For short, the 1944 Act), Customs Excise and Gold (Control) Appellate Tribunal, New Delhi (for short, 'the Tribunal') has referred the following questions of law for the opinion of this Court:

(2.) The assessee is engaged in the manufacture of iron and steel products classified under Chapter 72 of the Central Excise Tariff. It availed Modvat credit for the period from June, 1987 to June, 1988 on the duty paid on refractories used for lining of electric arc furnace which, in turn, is used for manufacture of iron and steel products. It filed Modvat declaration under Rule 57G of the Central Excise Rules, 1944 (for short, 'the Rules') on 28-3-1986 covering various input items of the refractories including the bricks. The Jurisdictional Assistant Commissioner, Central Excise Division, Faridabad (for short, 'the Assistant Commissioner') rejected the same. The appeal filed by the assessee against the order of the Assistant Commissioner was allowed by Commissioner (Appeals), Central Excise, New Delhi [for short, 'The Commissioner (Appeals)'] and the case was remanded for de novo adjudication. In the meanwhile, the assessee continued to avail Modvat credits on all the items including the bricks used in the electric arc furnace. The Assistant Commissioner issued show cause notice dated 31-8-1988 proposing to disallow the Modvat credit amounting to Rs. 2,26,638.50 availed by the assessee on various items of refractories from June, 1987 to June, 1988. After hearing the representative of the assessee and considering the reply filed by it, the Assistant Commissioner, vide his order dated 27-7-1990, confirmed the proposal contained in the show cause notice. The appeal filed by the assessee against the order of the Assistant Commissioner was partly allowed by the Commissioner (Appeals) vide his order dated 5-4-1991. He held that the items of inputs were not eligible for Modvat credits under Rule 57A of the Rules, but restricted the disallowance for a period of six months and reduced the total amount from Rs. 2,26,638.50 to Rs. 1,34,548.14 Further appeal filed by the assessee was dismissed by the Tribunal vide its order dated 10-7-1996 .

(3.) We have heard Shri Rajesh Bindal, learned Counsel for the assessee and Shri M.S. Guglani, learned Additional Central Government Standing Counsel for the Department.