COMMISSIONER OF CENTRAL EXCISE Vs. SHREE CEMENT LTD.

JUDGEMENT

(1.) WHETHER welding electrodes are eligible for Modvat credit under Rule 57A of the Central Excise Rules is an issue to be considered in this case.

(2.) THE Commissioner of Central Excise (Appeals) following the decision of the Tribunal in the case of Leader Engineering, reported in 1996 (88) E.L.T. 38 accepted the contentions of the party while allowing the appeal. Not being satisfied with the findings given by the Commissioner (Appeals), the department has filed the appeal.

(3.) SHRI Y.R. Kilania reiterated the stand taken by the department. On the other hand, Shri Pragyan Sharma, learned Advocate, appearing for the respondents submitted that the Tribunal has been consistently taking a view that welding electrodes are eligible for Modvat credit under Rule 57A of the Central Excise Rules. In support of his contention, he referred to Order Nos. A/840 -44/98 -NB, dated 11 -9 -1998 in the case of M/s - Maruti Udyog Ltd., and particularly he drew my attention to the observations made by the WRB in the case of M/s. TELCO Ltd., in para 8 of the Order Nos. 2188 -95/95/WRB, dated 9 -11 -1995. The relevant para is as under : -