1995 (5) TMI 160 - AT - Central Excise

Summary

Issues:
1. Eligibility of ramming mass as an input for MODVAT credit under Rule 57A.
2. Eligibility of foundry grade slab as an input for MODVAT credit under Rule 57A.
3. Eligibility of garnex board as an input for MODVAT credit under Rule 57A.

Analysis:

1. The Tribunal considered the eligibility of ramming mass as an input for MODVAT credit under Rule 57A. The appellant argued that the use of ramming mass as lining material for the furnace should make it eligible as an input. Referring to a judgment by the Hon'ble High Court of Calcutta, the Tribunal held that ramming mass qualifies as an eligible input for MODVAT purposes. The Larger Bench of the Tribunal also supported this view, stating that the judgment of the High Court of Calcutta must be followed. Therefore, the Tribunal concluded that a question of law arises regarding the eligibility of ramming mass as an input.

2. The Tribunal then addressed the issue of foundry grade slab's eligibility as an input for MODVAT credit under Rule 57A. The appellant argued that even though there was no High Court decision on this matter, the use of the slab for measuring temperature in the manufacture of steel should qualify it as an input. However, the Tribunal held that the slab, being used as an apparatus in the context of steel manufacturing, falls under the excluded category as per the proviso to Rule 57A. Therefore, the Tribunal concluded that no question of law arises concerning the eligibility of the foundry grade slab.

3. Lastly, the Tribunal examined the eligibility of garnex board as an input for MODVAT credit under Rule 57A. The Tribunal found that the use of garnex board in refractory linings and to prevent temperature loss during the casting process is similar to that of ramming mass. Since a question of law was allowed for ramming mass, the Tribunal also allowed the appellant's prayer to refer the matter to the High Court as a question of law. Therefore, the Tribunal referred the question of law regarding the eligibility of ramming mass and garnex board for MODVAT credit to the Hon'ble High Court under Section 35G of the Central Excises & Salt Act, 1944.

This detailed analysis outlines the Tribunal's decision on the eligibility of ramming mass, foundry grade slab, and garnex board as inputs for MODVAT credit under Rule 57A, providing a comprehensive overview of the legal issues involved in the judgment.