2000 (6) TMI 333 - AT - Central Excise

Summary

Issues:
- Challenge to disallowance of Modvat credit on specific items such as H.R. Plates, M.S. Rounds, labour charges, and M.S. Beams.

Analysis:
1. The appellants contested the disallowance of Modvat credit on various items as per Order-in-Appeal No. 175/98-C.E. The contention included the denial of credit on H.R. Plates, M.S. Rounds, and labour charges without proper documentation.

2. The counsel argued that a previous order in the appellants' case had allowed Modvat credit on M.S. Rounds as they were used as tools in the manufacturing process. However, the lack of proof for labour charges in the invoices led to the rejection of the claim.

3. The counsel further emphasized the essential function of M.S. Beams in the manufacturing process, stating that they were crucial tools in the rolling mill. The Departmental Representative (DR) referred to precedents to support the denial of credit on certain items.

4. Upon careful consideration, the judge noted the previous order's denial of Modvat credit on H.R. Plates but allowed the credit on M.S. Rounds due to their role as tools in the manufacturing process. The judge directed a remand for the consideration of labour charges based on newly produced invoices.

5. The judge also remanded the issue of Modvat credit on M.S. Beams for further verification, as the appellants had not previously highlighted their crucial function in the manufacturing process. The appellants were granted an opportunity to establish their entitlement to the credit during reconsideration.

6. Ultimately, the appeal was disposed of with the decision to allow Modvat credit on M.S. Rounds while requiring a reevaluation of the labour charges and M.S. Beams issues by the original authority. The appellants were instructed to provide necessary documents for reconsideration during the de novo proceedings.