RISHAB STEELS Vs. COMMISSIONER OF CENTRAL EXCISE,

JUDGEMENT

(1.) IN these three appeals, the issue relates to madvatability of LDO and furnace oil used as inputs by the appellants in manufacture of final products (ingots). The Assistant Commissioner disallowed the modvat credit by three orders in original, all dated 29.3.96. His orders were upheld by the Commissioner (Appeals) through common impugned order -in -appeal dated 13.12.96.

(2.) LD . Counsel of the appellants has submitted that the issue regarding the availability of modvat credit on furnace oil and nows stands settled in favour of the appellants in their own earlier case which was decided by the Larger Bench along with a case of Ballarpur Industries Ltd. vs. CCE Belgaum [2000 (66) ELT 312 (Tribunal)]. In that case the Tribunal had by majority, taken the view that diseal oil, mobile oil, furnace oil used for captive consumption were entitled for modvat credit even prior to 16.3.95 under Rule 57 A of the Central Excise Rules. The Ld. SDR has also not disputed this fact.

(3.) CONSEQUENTLY , the impugned order of the Commissioner (Appelas) is set aside. The appellants are entitled to take modvat credit on furnace oil and LDO of the disputed amounts as detailed in the show cause notice and in the Order -in -original. All the appeals of the appellants accordingly stand allowed.