BIRLA JUTE & INDUSTRIES LTD. Vs. CCE, RAIPUR

JUDGEMENT

(1.) TWO appeals and once cross objection have been filed by M/s. Birla Jute Industries against the impugned order. The counter appeals have been filed by the Department against the impugned order as the four appeals and one cross objection arise out of the same impugned order, therefore, all the four appeals and the cross objection were heard together and are being disposed of by this common order. The facts of the case are that the Department disallowed Modvat credit on refractory materials used for internal lining of kiln, cables, converter, rotor starter panel, electrical spares; spare parts used in collecting and cleaning cement dust in packing house and other dust emanating places of the plant and also for use in Process Control room; cast steel used in cement plant to lift grinding media used for crushing coal and parts of kiln machinery, Hose assembly, rotary gear pump, conveyor belt electrodes, flexible lances/gear unit and penion, in Appeal No. E/630/97 -NB. In Appeal No. E/863/96 -NB Ld. Commissioner disallowed Modvat credit on Steel Wire Rope, Assembly Manifold Fuel, Impeller and Turbo Charger, Chain Pulley Block, Beco Drill Pipe, Loader, Tyre/Conveyor Belt, B. Check Kit, R.P. Feeder Hydraulic Jack and Thermo Plant Hose holding that the above items are parts of earth moving machinery and material handling machinery and are neither involved in process of the goods for manufacture of final product nor used in the manufacture of final product. Hence Modvat credit was not admissible under Rule 57Q(1). Ld. Commissioner further disallowed Modvat credit on Refractories on the ground that Modvat credit has been taken on the above goods prior to 16.3.1995, when these were not specified as capital goods under Rule 57Q. Ld. Commissioner also disallowed Modvat credit on Electrodes, Flexible Rubber Bellows, Over Cord, Explosive, Gun Metals, Rubber Roll, Switches, Fuses, Wires and Cables on the ground that these goods are of Misc. nature and are not used in the process of final product.

(2.) THE Department has come up in Appeal No. E/58/97 -NB against the Commissioner's findings allowing Modvat credit on cables and cast steel as capital goods and in Appeal No. E/789/97 -NB on the question of allowing Modvat credit on oil Seals, Gasket, Felt Seal, Leather Bucket, Washer Rubber -O -Ring, Gasket Rings, Flexible Rubber Bellows on the ground that all these items are used to prevent leakage of oil in machines; that prevention of oil leakage in the machine is neither associated with nor related to the process of manufacture of the final products. Moreover, these goods do not bring any definite change in the goods also.

(3.) ARGUING the case for assessee Shri Sanjay Grover, ld. Counsel submits that all these items on which Modvat credit had been disallowed, are covered by a (sic)umber of decisions of this Tribunal. He submitted that Fire Bricks, Castables, misc. Refractory goods, Ducrodon Castings, Conbextra, Ceramic Anchor are refractory materials and used for internal lining of kiln. He submitted that refractory material is covered by a number of decisions holding that Modvat credit will be admissible on the items under Rule 57Q, In support of his contention he cited and relied upon the decision of the Larger Bench of this Tribunal in the case of Jawahar Mills Ltd. v. CCE reported in : 1999 (108) ELT 47.