9911796707
|
Home
Issues:
Availability of Modvat credit for various items including Fibre Glass Filter mesh, Ramming mass, Granodine, Sodium Cyanide, Groove Insert Sleeves, Bright Steel Bars, and Rejected Pistons. Analysis: The judgment dealt with the availability of Modvat credit for several items. The issue of Ramming mass was discussed, where it was noted that the North Regional Bench allowed the credit, but the majority view held that ramming mass, used for maintenance, cannot be considered in relation to the manufacture of the final product. The decision in Andhra Pradesh Paper Mills Ltd. case was cited to emphasize that eligible items must participate in the manufacturing process. Consequently, Modvat credit for ramming mass was disallowed. Regarding Fibre Glass Filter mesh, the appellant argued that it was essential for filtering impurities from molten metal, thus should be considered an input for the final product. However, following a precedent related to graphite rods, which were deemed ineligible, the filter mesh was also considered ineligible for Modvat credit due to its nature as an apparatus used in the manufacturing process. In the case of Granodine, the appellants failed to provide sufficient explanation for its use in plating pistons. As a result, the court upheld the lower authority's decision due to the lack of information presented. Sodium Cyanide was claimed to be used for coating pistons, but since this claim was not addressed in the lower authority's order, the court could not make a ruling on its eligibility for Modvat credit, suggesting the appellants approach the lower authority for clarification. No findings were available for Groove Insert Sleeves and Bright Steel Bars, as these items were not addressed by the lower authority, leaving no basis for a decision by the court. Regarding Rejected Pistons, it was established that they were brought in for reconditioning and repairs, not for manufacturing activities. Consequently, Modvat credit was denied for rejected pistons, as they were not considered inputs in the manufacturing process of the final product. In conclusion, the appeals were disposed of based on the above analysis of each item's eligibility for Modvat credit.
|
