MONNET ISPAT LTD. Vs. CCE, RAIPUR

JUDGEMENT

(1.) THIS is an application filed by M/s. Monnet Ispat Ltd. for waiver of predeposit of Rs. 3,41,007 -52 paise which has been disallowed as Modvat Credit and penalty of Rs.15,000/ - imposed on them.

(2.) SHRI K.K.Gupta, learned Advocate submitted that the Modvat Credit has been disallowed in respect of Boric Acid which was used along with ramming mass for lining of the furnace; that it has been held by the Tribunal in CCE, Chandigarh vs. Bhusan an Industries Ltd., 2000 (119) ELT 129 (T) that Modvat credit is available in respect of ramming mass, foundry fluxes and chemicals; that similar views were expressed by the Tribunal in the case of Kalyani Steels Ltd. vs. CCE, Pune, 1998 (99) ELT 620; that Boric Acid is also a chemical used in the furnace along with ramming mass and, therefore, Modvat credit is available to them. He further, submitted that Modvat credit has also been disallowed to them in respect of H.R.sheets which are used along with refractories to protect refractory lining from damage from the raw materials and Hot molten metal; that after use for a period of time H.R. sheets final get melted and form part of finished goods. i.e. M.S. ingots, and, therefore, Modvat credit should be allowed. He also mentioned that Modvat Credit has also been disallowed on the ground that it was availed of beyond the period of 6 months of he duty paying documents; that they had availed of the Modvat Credit in time on 30.3.99 as the invoice issued by M/s Hindustan Petroleum Co. Ltd. is dated 8.10.98; that a small amount has been disallowed on the ground that the Credit was availed in excess because the duty itself was paid in excess by the supplier of the inputs. Finally, he mentioned that an amount of Modvat Credit amounting to Rs. 1,23,061/ - was availed of by the Appellants on capital goods received in their factory in August, 1997 and this has been disallowed on the ground that the Appellants being manufacturer of Steel Ingots of non -alloy steel with the aid of induction furnace was excluded from the preview of the Modvat credit as during the said period they were covered under the provisions of Section 3A of the Central Excise Act; that they have never worked under the provisions of Section 3A of the centra Excises Act and in any case the duty on the basis of annual production capacity was charged w.e.f. September , 1997 and note August, 1997. He also mentioned that it has been held by the Larger Bench of the Appellate Tribunal that if a declaration has been filed under Rule 57Q the Modvat Credit can be availed of , if the goods is covered by Rule 57A and no separate declaration will be required.

(3.) SHRI Swatantra Kumar, learned D.R. reiterated the finding s contained in the impugned Order.