COMMISSIONER OF CENTRAL EXCISE, Vs. HARYANA CONCAST LTD.

JUDGEMENT

(1.) The Revenue has filed the above application for reference of the following questions stated to have arisen out of Final Order No.A/103/97 -NB dated 6.1.97: 1. Whether the modvat credit can be taken on the original copies of the invoices under Rule 57G read with Notification No. 23/94 -CE(NT) dated 20.5.94 and Rule 52A of the Central Excise Rules, 1944. (ii) Whether the gate passes issued before 1.4.94 and endorsed after this date are valid documents under rule 57G of the Central Excise Rules, 1944 for the purpose of availing the modvat credit thereon. (iii) Whether fire bricks are eligible for availing modvat credit under Rule 57A of the Central Excise Rules, 1944 when such bricks are used for lining the surface of the furnaces and hence these are considered parts of machines. Such items are excluded from the eligibility in terms of the Explanation under Rule 57A

(2.) The brief facts leading up to the filing of the reference application are that the assessees who are manufacturers of non -alloy steel billets, ingots/CTD bars, etc., and availing of modvat facility under Rule 57A of the Central Excise Rules took credit of Rs.42,515/ - on the strength of original invoice, availed credit of Rs.17,733/ - on the basis of GPLs issued prior to 1.4.94 but endorsed subsequent to that date and availed credit of Rs.38,625/ - on fire bricks. A show cause notice was issued proposing denial of credit on the grounds that endorsed gate passes are not valid duty paying documents for the purpose of taking credit that credit could be taken only on duplicate copies of invoices and not on original invoices and that fire bricks used in electric arc furnace for manufacture of steel are parts of machinery and hence excluded from the coverage of inputs under Rule 57A. The Additional Commissioner disallowed the entire modvat credit and his order was upheld by the Commissioner (Appeals). On appeal to the Tribunal, denial of credit was set aside and the appeal of the assessee was allowed. Hence this application.

(3.) I have heard Shri Swatanter Kumar, learned DR and perused the records.