NULINE GLASSWARE (INDIA) LIMITED Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) THE Commissioner of Central Excise has disallowed modvat credit of Rs.12,00,455/ - under Rule 57U of the Central Excise Rues on refractories on which the assessee took credit prior to issue of notification 11/95 dated 25/2/1995 under to which clause (d) under Explanation (1) to Rule 57Q was inserted so as to specifically cover refractories as capital goods under Rule 57Q.

(2.) ON hearing both sides we find that the Tribunal has taken a view in more than one case that refractory material is eligible for modvat credit even prior to the introduction of clause (d) to Explanation 91) to Rule 57Q. One such decision which is cited before us is in the case of Twiga Fibre Glass Ltd. CCE 1999 (109) ELT 659. Following the ratio of the above decision which is squarely application to the facts of the present case we hold that modvat credit is admissible to the appellant. Hence we set aside the demand along with the penalty which has been imposed upon the appellants.

(3.) IMPUGNED order set aside and the appeal allowed.