1999 (7) TMI 272 - AT - Central Excise

Summary

Issues:
1. Whether Modvat credit is permissible for specific items.
2. Consideration of items not pressed by either party.
3. Modvat credit for tubes and pipes.
4. Modvat credit for Sugar Machinery parts.
5. Modvat credit for plain plates/MS plates.
6. Consideration of items not pressed by either party.
7. Modvat credit for shape & section.

Analysis:
1. The advocate for the appellant argued that the dispute revolved around the permissibility of Modvat credit for various items, specifically Pipes & Tubes, Sugar Machinery Parts, and Plain Plates/MS Plates. The respondent's representative mentioned that items not pressed had been previously decided in favor of the Revenue.

2. Regarding tubes and pipes, it was noted that previous Tribunal decisions had concluded the issue. For Sugar Machinery parts, the advocate referred to a show cause notice indicating their classification under Rule 57Q of the Central Excise Rules. Similarly, for plain plates/MS plates, reference was made to a Tribunal order supporting the allowance of Modvat credit based on their use in manufacturing machinery.

3. The respondent's representative cited previous decisions in relation to the third item, emphasizing that the adjudicating authority had already considered the matter. The Tribunal, after careful consideration, allowed Modvat credit for items 1 and 2, while remanding the decision on plain plates/MS plates back to the adjudicating authority for further examination.

4. The Tribunal directed the adjudicating authority to assess whether the plain plates/MS plates were used in the manufacturing process and to determine the quantum of penalty accordingly. The appellants were granted the opportunity to present all relevant arguments before the adjudicating authority.

5. Ultimately, the appeal was disposed of with the decision to allow Modvat credit for specific items, remanding the matter for further examination, and providing the appellants with the chance to present additional arguments before the adjudicating authority.