ALOK FERRO ALLOYS LTD. Vs. CCE

JUDGEMENT

(1.) M /s. Alok Ferro Alloys Ltd. has filed this appeal being aggrieved with the Adjudication Order No. 350/Commr/2002 dated 11.4.2002 by which the Commissioner, Central Excise has disallowed the Modvat Credit, demanded differential duty and has imposed separate penalties under Section 11AC of the Central Excise Act and Rule 173Q of the Central Excise Rules, 1944.

(2.) SHRI K.K. Anand, learned Advocate, submitted that the Appellants manufacture Ferro Alloys; that they got their Central Excise Registration endorsed for the manufacture of Electric Arc Furnace and Fabricated Items of Steel; that for the said purposes they had purchased various inputs and taken the Modvat Credit of the duty amounting to Rs. 44,56,789 in their RG 23A -Part II during 1.10.1994 to 31.3.1995; that after completion, they paid the duty of excise amounting to Rs. 42 -45 lakhs from RG 23 -Part II on the two arc furnaces on 12.3.95 and took the same as Modvat Credit of capita) goods in their RG 23C -Part II; that the Commissioner has allowed the Modvat Credit amounting to Rs. 37,39,031 under the impugned order on the ground that all the materials had been used for manufacturing steel shell of the Electric Arc Furnace and other components, fitments and sub -assemblies used forthe operation and functioning of the Electric Arc Furnace.

(3.) THE learned Advocate, further, mentioned that the Commissioner has, however, disallowed Modvat Credit amounting to Rs. 7,17,758 in respect of M.S.Channel, C.T.Bar, M.S.Round, M.S.Rect Bar, Cement, M.S.Structural Cutting and plate cutting on the ground that these goods were used solely for construction of civil foundation and other holding structure and shades.