COMMISSIONER OF CENTRAL EXCISE Vs. BHARAT INDUSTRIES

JUDGEMENT

(1.) THIS is an appeal at the instance of the Revenue. They challenge the Order -in -Appeal No. 36 -CE/KNP -I/99, dated 26 -3 -1999. By the said order the assessee's appeal claiming Modvat credit on Steel Shots used in the manufacture of finished product was allowed. According to the Department credit on Steel Shots used in the manufacture of C.I. Castings is only admissible under Rule 57A of the Rules and not under Rule 57Q as observed by the Commissioner. Since Modvat credit has now been allowed under Rule 57Q/ the Revenue wants the order of the appellate authority reversed.

(2.) DEMAND -cum -show cause notice dated 22 -3 -1996 was issued to the manufacturer alleging : -

(3.) IN reply to the show cause notice the assessee filed detailed objection. Their contention on the use of Steel Shots as could be seen from the order passed by the adjudicating authority is as follows: