2000 (2) TMI 173 - AT - Central Excise

Summary

Issues involved: Disallowance of Modvat credit on various items including joints, channels, angles, rolled and S.S. welded tubes, M.S. angles and plates, H.R. plates and shape and sections, chequered plates and ITR plates.

Summary:
The appeal was against the disallowance of Modvat credit on specific items used in the manufacturing process. The appellants claimed that the items in question were essential components of the plant and thus eligible for Modvat credit. The Revenue contended that certain items were not directly involved in the manufacturing process and hence ineligible for credit. The Commissioner (A) disallowed credit on certain items but allowed it on others, based on their use and relevance to the manufacturing process.

The appellants argued that most items were covered by a previous Tribunal decision, except for shapes and sections. The Revenue cited a different case to support their disallowance of credit on specific items. After considering the arguments, the Tribunal noted that the items disallowed were used as building materials rather than for supporting machinery parts. However, items used to support machinery parts were deemed eligible for Modvat credit under Rule 57Q. The Tribunal followed its previous decision in the appellants' case and allowed Modvat credit on all items except M.S. sections and shapes.

In conclusion, the Tribunal ruled in favor of the appellants, allowing Modvat credit on most items except for M.S. sections and shapes, based on their use in supporting machinery parts.