COMMISSIONER OF CENTRAL EXCISE Vs. KESHARI STEELS

JUDGEMENT

(1.) THIS application is for referring question of law for decision by the concerned High Court as provided by Section 35G(1) of the Central Excise Act, 1944. The question sought to be referred is :

(2.) SHORT facts which led to the above issue are as follows.

(3.) RESPONDENTS , M/s. Keshari Steels ( a division of Reliance Ispat Industries Ltd.) are engaged in the manufacture of iron and steel items, namely, continuous cast billets and bars falling under Chapter 72 of the Schedule to the Central Excise Tariff Act, 1985. They are also availing the benefit of Modvat scheme under Rule 57A of the Central Excise Rules, 1944. Respondents were availing credit on ramming mass which are used in or in relation to the manufacture of the final product. Department took the view that respondents wrongly availed credit on ramming mass and oxygen gas as these were not considered as inputs eligible for Modvat credit. In this view, show cause notices were issued. Assistant Collector disallowed the Modvat credit claimed by the respondents. Aggrieved by that order, respondents went up in appeal. Appellate authority, namely, Collector (Appeals), Indore allowed the appeals and reversed the order of the adjudicating authority wherein Modvat credit was disallowed. Revenue came up in appeal before this Tribunal questioning the correctness of the order passed by the appellate authority. This Tribunal by Final Order Nos. A/195 -196/97 -NB (S/M), dated 3 -4 -1997 dismissed the appeals. Aggrieved by the said decision, this application for referring the above stated question was filed under Section 35G(1) of the Central Excise Act, 1944.