HINDUSTAN COPPER LTD. Vs. CCE

JUDGEMENT

(1.) THE issue involved in this appeal, filed by M/s. Hindustan Copper Ltd., is whether they were eligible to take the Modvat Credit of the duty paid on MM. Rounds.

(2.) SHRI B.L. Narasimhan, learned Advocate, submitted that the Appellants manufacture copper and products thereof and avail of Modvat Credit of the duty paid on inputs as well as Capital goods; that the copper ore obtained from mines is subjected to crushing, grinding and floatation in the concentrator plant to produce copper concentrate; that the process of grinding is done firstly in rod mills and secondly in ball mills to reduce the size of ore from 25 mm to 200 mm; that for this purpose grinding rods and grinding balls are used in the rod and ball mills as grinding media; that they procure grinding rods from M/s. Visvesvaraya Iron & Steel Ltd.; that the description of the grinding rods in the invoice was shown as M.M. Rounds; that they claim the Modvat Credit of the duty paid on grinding rods as inputs under Rule 57A of Central Excise Rules, 1944; that however, the Asst. Commissioner informed them that grinding rods are Capital goods covered under Rule 57Q of the Central Excise Rules and they have to file a declaration under Rule 57T and not under Rule 57G of the Central Excise Rules; that accordingly they filed another declaration under Rule 57T declaring the grinding rods as Capital goods; that subsequently in 1998 show cause notice was issue to them for disallowing the Modvat Credit on the grinding rods taken during the period, July 1997 to December 1997; that the Asst. Commissioner confirmed demand by disallowing Modvat Credit on the ground that grinding rods falling under Sub -heading 7228.30 of the Schedule to the Central Excise Tariff Act do not constitute Capital goods and they have not filed an declaration; that the Commr. (Appeals) also under the impugned Order has rejected their appeal.

(3.) COUNTERING the arguments Shri H.C. Verma, learned DR, reiterated the findings as contained in the impugned Order.