1998 (8) TMI 331 - AT - Central Excise

Summary

Issues: Denial of Modvat credit under capital goods on multiple items.

Analysis:

1. Oxygen and Acetylene Gas (Sr. No. 1):
- The gases are considered consumables, not capital goods, as they are used in a process that consumes them. Citing a previous tribunal case, the credit on these items is deemed unavailable under the law.

2. Refractories (Sr. No. 2):
- Modvat credit is allowed as capital goods based on the application of specific ratios from previous cases, namely Jindal Strips and Shri Ramakrishna Steel Industries. The credit is deemed available for this item.

3. Air-filter Regulator (Sr. No. 3):
- Late filing of declaration is condonable as credit was taken post-declaration, supported by relevant circulars and tribunal decisions. Taking credit on the original invoice in April '95 is lawful based on a case law interpretation before the amendment introducing the need for a duplicate copy.

4. Lubricating Oils & Greases (Sr. No. 4):
- Credit taken on the original invoice in April '95 is considered correct. The absence of a brand name in the declaration does not affect the identification of the product as lubricating oils and greases, justifying the credit.

5. Nickel Micro Screen (Sr. No. 5):
- The small amount of credit involved, taken on a duplicate copy, benefits the appellants, and the credit need not be reversed.

6. Welding Electrodes (Sr. No. 6):
- The denial of credit based on taking it on the original invoice in March '95 is deemed incorrect, following a similar finding in a previous issue. The presence of the manufacturer's name on the invoice supports the acceptance of the credit.

7. Electronic Regulator (Sr. No. 7):
- The allegation of credit being taken on a photocopy is refuted, and the credit is found admissible based on evidence presented in court, similar to the reasoning in a previous issue.

In conclusion, the judgment orders the reversal of credit on Oxygen and Acetylene gases but allows credit on the remaining items from Sr. Nos. 2 to 7. The appeals partially succeed, and consequential benefits are granted accordingly.