K.L. STEELS LTD. Vs. CCE

JUDGEMENT

(1.) M /s. K.L. Steels Ltd. were engaged in the manufacture of iron & steel products, such as, angle shapes & sections, other bar and rods of non -alloy steel etc. They availed modvat credit in respect of lubricating oil and welding rod/welding wire. The Asstt. Commissioner of Central Excise, Ghaziabad, following the Tribunal's decision allowed the modvat credit in respect of lubricating oils and the modvat credit in respect of welding rods was disallowed. The Commissioner of Central Excise (Appeals), Ghaziabad, confirmed the view taken by the Asstt. Commissioner of Central Excise, Ghaziabad. I have heard Shri Rajesh Chibber, advocate, and Shri Y.R. Kilania, JDR.

(2.) SHRI Rajesh Chibber, advocate, submitted that the matter was covered by the Tribunal's decision in the case of Bajaj Auto Ltd. v. Commissioner of CCE, Patna,, 1998 (99) ELT 479 (Tribunal). He further submitted that in their case the electrodes were consumables and were used in the finishing of their final products.

(3.) I have carefully considered the matter. The Commissioner Central Excise (Appeals) had observed that welding rods were used for welding the sheets which were used in the furnace. The welding rods' were also used for removing the surface defects and minor repairs of their final products.