1996 (4) TMI 124 - HC - Central Excise

Summary

Issues:
1. Admissibility of Modvat credit on ramming mass, Oxygen/Acytelene gas, and packing material used in relation to the manufacture of final products under Rule 57A of the Central Excise Rules, 1944.

Detailed Analysis:
The applicant, Commissioner of Customs and Central Excise, Indore, sought a direction to the Tribunal regarding the admissibility of Modvat credit on ramming mass, Oxygen/Acytelene gas, and packing material used in furnace and cutting tools, respectively. The dispute arose when the Assistant Collector disallowed Modvat credits claimed by the non-applicant, a manufacturer of continuous cast Billets, on the grounds that ramming mass was not an input. The subsequent appeal to the Collector (Appeal) also ruled against the applicant. The Tribunal considered various Tribunal decisions and the High Court judgment in the Singh Alloys & Steel Ltd. case. The Tribunal dismissed the reference application, stating that the issue of Oxygen/Acytelene gas had been held eligible for Modvat credit, but the matter concerning ramming mass and packaging materials was already covered by the High Court judgment. The Tribunal emphasized that the mere filing of an appeal by the department did not change the legal position, leading to the dismissal of the reference application.

The High Court directed a show-cause notice against admission, and both counsels presented their arguments. The applicant's counsel argued that the Tribunal's order was based on a decision challenged before the Division Bench, warranting a reference. On the other hand, the non-applicant's counsel contended that once a matter is decided by the Court, no referable question of law remains. Citing precedents, the Court highlighted that the pendency of the same issue before the Division Bench did not create a referable question of law. The Court noted that the Full Bench of the Tribunal had a similar view to the High Court of Calcutta, indicating no referable question of law existed. Ultimately, the Court found the application meritless and declined admission, dismissing the application without costs but fixing counsel fees for each side.

In conclusion, the judgment addressed the admissibility of Modvat credit on specific items used in manufacturing processes, analyzing previous decisions and the application of relevant legal principles to determine the outcome of the case. The Court's decision was based on settled law and precedents, ultimately leading to the dismissal of the application seeking a reference on the admissibility of Modvat credit.