2007 (6) TMI 518 - AT - Central Excise

Summary

Issues involved: Claim of Modvat credit for welding electrodes and plates, sheets.

Claim of Modvat credit for welding electrodes: The Tribunal rejected the claim for Modvat credit on welding electrodes based on a previous decision by the Larger Bench in the case of Triveni Engg. And Industries Ltd. Vs. CCE, Meerut.

Claim of Modvat credit for plates, sheets etc.: The Commissioner's finding was in favor of allowing the claim for credit on plates, sheets, etc. The items were used for staging and supporting structures/tank, and the nature of use was not disputed. The appellant's counsel cited precedents from Tribunal orders to support the eligibility for credit. The dispute was found to be resolved based on previous decisions in the appellant's own case and the Division Bench's decision in the case of Bellary Steels & Alloys Ltd.

Result: The appeal was allowed in relation to the claim for plates, sheets, etc., excluding welding electrodes. The penalty was set aside due to the legal nature of the dispute. The appeal was ordered accordingly.