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TMI Blog1996 (9) TMI 254X X X X Extracts X X X X X X X X Extracts X X X X ..... e following inputs while approving their declaration under Rule 57G. The Assistant Commissioner vide order dated 30-4-1990 denied benefit of Modvat credit on the following inputs holding that these cannot be considered as inputs used in or in relation to the manufacture of final products by the appellants, namely Aluminium ingots, billets and products thereof: - (a) High Chrome Grinding Ball, (b) Manganese Grinding Ball, (c) Refral Dip Tube Float, (d) Refractory Bricks/Refractory Cement, (e) Asbestos Magnesia & ACC Calundum High Alumina Refractory Cement, (f) Laboratory Chemicals, and (g) Cutwell oil. 2. The orders of the Assistant Commissioner have been upheld by Commissioner (Appeals). The ld. Counsel Shri V. Sridharan appear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. As for refractory bricks/refractory cement and high alumina refractory, Ld. counsel explained that these are used for lining of various furnaces so as to withstand the high temperature, thermal shock and to act as insulating material so as to conserve heat in the furnace. They are also used to make a paste for lining of transfer of runners and metal runners for casting of slabs, billets and wire rods. Ld. counsel submitted that eligibility for Modvat for these inputs is covered by the decision of the Supreme Court in the case of IFFCO (supra) and also a larger Bench decision in the case of Rama Krishna Steels - 1996 (82) E.L.T. 575 and Union Carbide of India v. CCE - 1996 (86) E.L.T. 613 = 1996 (15) RLT 144 wherein the larger Bench held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s made by both the parties. We have also perused the nature of the inputs and the role played by these inputs in or in relation to the manufacturing process resulting in production of aluminium ingots, billets and other products. We find that on certain inputs like refractory material there is a specific decision in the Larger Bench of the Tribunal decision of Union Carbide of India (supra) which has specifically held that such material would be eligible input under Rule 57A and the same Larger Bench decision as referred to above has not followed and has overruled the decisions contrary by the Tribunal in the case of Mukund Iron and Steel works - 1994 (45) E.L.T. 544 which has been followed in the impugned order by the Commissioner (Appeals ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... doubt is set at rest by the use of the words used `in relation to the manufacture'. The ratio of this decision would apply in this case to the inputs like Manganese grinding ball, refral dip tube float. In this connection it may also be mentioned that a ground for denying the Modvat credit in some of these inputs is that they are parts of the machinery which are excluded. But the Larger Bench in the Union Carbide of India decision (supra) has held that parts of the machinery cannot be excluded and what is excluded is only a complete machinery apparatus equipment appliances etc. mentioned in the explanation under Rule 57A. On these grounds also the denial of Modvat on some goods is not justified. On the laboratory chemicals it is seen that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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