9911796707
TMI Blog1994 (12) TMI 210X X X X Extracts X X X X X X X X Extracts X X X X ..... nch, the reference applications themselves have been taken up for disposal with the consent of both the parties dismissing the stay applications. 2. The following questions are sought for reference to the Hon ble High Court : - (1) Whether on the facts and in the circumstances of the case the Appellate Tribunal is right in law in holding that the applicants are not eligible to MODVAT credit in respect of Ramming Mass, Fibre glass and filter mesh used in or in relation to the manufacture of pistons on the ground that they are covered under Proviso to Rule 57A of the Central Excise Rules, 1944. (2) Whether on the facts and in the circumstances of the case the Appellate Tribunal is right in law in rejecting the MODVAT credit on rejected ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ken by majority of the Benches, we hold that MODVAT credit for ramming mass cannot be allowed. The learned DR adopted the reasoning of the Tribunal and opposed the reference. Inasmuch as the larger Bench of the Tribunal following the ratio of the Hon ble High Court of Calcutta has allowed the MODVAT credit in respect of ramming mass as an input, we allow the applicants prayer for referring this question to the Hon ble High Court for consideration as pleaded. (2) Filter mesh In respect of Filter mesh, the learned Counsel pleaded that the same is used to remove the oxide inclusions from the molten alloy melts and referred us in this regard to the averments made in the statement of facts in para 3.1 of the reference application, whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duct, and the item used for filteration therefore has to be considered as an input used in or in relation to the finished product. We observe that in the case of use of graphite rod which is used for stirring the molten metal, we have held that since stirring is a process involved during the course of the finished product, it has to be considered in the nature of an apparatus or an appliance and will not be eligible for the benefit of MODVAT credit in view of the proviso to Rule 57A of Central Excise Rules under which, machines, machinery, plant, equipment, apparatus, tools or appliances used for producing or processing of any goods in relation to the final product are not eligible for the benefit of input credit. Following the ratio of thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ence is therefore allowed in this regard. (3) Rejected pistons The learned Counsel pleaded that the North Regional Bench in the case of M/s. Alcobex Metals Ltd. v. CCE, reported in 1993 (68) E.L.T. 146 have held that on the defective goods cleared by the customers under Rule 57F(2) received from the appellants under cover of gate passes on payment of duty are re-melted and used as inputs in the manufacture of final product MODVAT credit would be available and such defective goods cannot be considered as a final product. In this regard, he referred us to para 6 of the order of the North Regional Bench, which is reproduced below for convenience of reference : - ************ In this regard, we have held as under : - So far as reject ..... X X X X Extracts X X X X X X X X Extracts X X X X
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