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TMI Blog1988 (2) TMI 283X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. In Appeal No. 311/87 the case relates to recovery of MODVAT credit on MS Scrap input on which the appellants were alleged to have availed of MODVAT credit prior to the date of filing declaration, for the purpose with the Assistant Collector under Rule 57G of the Central Excise Rules, 1944. The case also relates to irregular availing of MODVAT credit amounting to Rs. 2,77,562/- on ramming mass received in the factory from April 1986 to November 1986 on the ground that ramming mass is not eligible for MODVAT credit being not an input used in or in relation to manufacture of final product. In Appeal No. 243/87 the issue relates similarly to ramming mass and MS scrap besides C.I. Duplex Moulds. Credit availed of in respect of Duplex Moulds w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns as above. Apartfrom this, the learned Consultant submitted that Ramming mass though not raw material for their finished product is yet used in or in relation to the manufacture of their final product because it is used in the furnace and gets melted with the final product during manufacturing process. According to the learned Consultant, Collector had already allowed MODVAT credit for heating electrodes which are also not raw material, and applying the same principle, Ramming mass, which is a substance coated on the layer of the bricks used in the furnace in order to ensure that the liquid metal does not leak out, and since in the process Ramming mass itself melts and gets mixed up with the molten metal liquid, and therefore Ramming mass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ultant was that the Government of India s order on deemed credit dated 7.4.1986 covers stocks purchased and lying in stock on or after 1.3.1986. Therefore, such deemed credit can be allowed to the appellants without reference to the date of their declaration for coming under the MODVAT Scheme in terms of Rule 57G of the Central Excise Rules, 1944. 3. Heard Shri K.K. Bhatia, the learned S.D.R. who asserted that Duplex Moulds were clearly hit by the exclusions in the Explanation under Rule 57A and were not eligible for any MODVAT Credit, and Ramming mass was also material used in the furnace, and cannot be said to have been used in relation to the manufacture of final product. It was also pointed out that it is mandatory, according to the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cturer intending to take MODVAT credit, and states that such manufacturer shall file declaration with the Assistant Collector, Central Excise having jurisdiction over his factory indicating the description of the final product and inputs used in each, and that the manufacturer should obtain a dated acknowledgement of the said declaration. Sub-rule (2) specifically states A manufacturer who has filed a declaration, under sub-rule (1) may, after obtaining the acknowledgement aforesaid, take credit of duty paid on inputs received by him . It is dear that the facility of MODVAT credit on inputs available to the manufacturer is necessarily from the date on which he obtains the dated acknowledgement of the declaration filed by the manufacturer b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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