2005 (10) TMI 332 - AT - Central Excise

Summary

Issues: Disallowance of Modvat credit on electrodes, asbestos packing, P.M. shaft, and C.S. castings.

In the judgment delivered by Ms. Jyoti Balasundaram, the issue of disallowance of Modvat credit on electrodes, asbestos packing, P.M. shaft, and C.S. castings was considered. The Tribunal held that Modvat credit on electrodes was not admissible based on a previous decision. However, the credit for asbestos packing was allowed as the appellant had produced a declaration. The Tribunal referred to a previous case to support the admissibility of Modvat credit even without a declaration. Regarding P.M. shafts and C.S. castings, the authorities had disallowed credit citing specific grounds. The Tribunal analyzed that P.M. shafts are components of mill rollers and thus covered under the relevant rule. Similarly, C.S. castings were deemed integral for the functioning of the mill roller, making them eligible for credit. Consequently, the Tribunal upheld the denial of Modvat credit on electrodes but allowed the remaining credit amount. Additionally, the penalty imposed was reduced significantly, and the appeal was partly allowed, providing a detailed reasoning for each aspect of the decision.