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TMI Blog1997 (5) TMI 179X X X X Extracts X X X X X X X X Extracts X X X X ..... pellants are engaged in the manufacture of cement. They procured a number of inputs and claimed Modvat credit of duty paid on the inputs under the Modvat scheme. The department alleged that the Modvat credit on the items mentioned in the preceding paragraph was not admissible to the appellants on various grounds. Against that denial of Modvat credit the appellants have filed the present appeal before us. 3. Shri Sanjay Grover, learned Advocate arguing the appeal analyses the admissibility or otherwise on each item. He submits that in so far as explosives are they are covered by the decisions of the Tribunal in the case of Associated Cement Co. Ltd. [1991 (55) E.L.T. 415] as also by the decision of the Tribunal in the case of Indian Rayon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... question of admissibility of Modvat credit on Steel Castings, learned Counsel submits that Steel Castings are part of the grinding machine for grinding cement. He submits that they are not independent machines, plants, equipments, apparatus, etc. He submits that they did not have any prime movers to act by themselves and therefore they can at best be treated as part of the machine. He submits that admissibility of Modvat credit on parts of machine is covered in their favour by the decision of this Tribunal in the case of Union Carbide India Limited [1996 (86) E.L.T. 613]. The ld. Counsel submits that these Steel Castings are in the nature of lining material of the cement manufacturing machine and can be compared to the use of lining materi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the conveyor system they do not perform a complete function and hence even in that respect they are only part of the conveyor system. 12. In so far as HDPE bags are concerned, the learned Counsel submits that the Modvat credit on HDPE bags pertains to the period from 14th June, 1990 to 16th September, 1990. He submits that admissibility of Modvat credit is covered by the decision of this Tribunal in the case of Orissa Cement Limited [1994 (69) E.L.T. 537]. He submits that their case is squarely covered by the ratio of the decision of this Tribunal in this case. 13. Summing up his argument, learned Counsel submits that in view of the above submissions the appeal may be allowed. 14. Shri Y.R. Kilanyia, learned JDR appearing for the Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unal, the Modvat credit will be admissible on Explosives, Grinding Media, Cylpebs, Refractories (Fire Bricks), Steel Castings, Ball Bearings, Electrodes, Refractory Cement, Rubber and Articles thereof and HDPE bags. 19. In so far as admissibility of Modvat credit on Acetylene Gas, Oxygen Gas, Cables, Batteries, Electric Insulated Wires is concerned, we find that there is sufficient evidence on record to show that they cannot be treated as inputs used in or in relation to the manufacture of cement and hence on these items the lower authorities have rightly denied the benefit of Modvat credit of duty on these items under the Modvat scheme. 20. In the result the impugned order is modified to the extent stated above and the appeal is dispos ..... X X X X Extracts X X X X X X X X Extracts X X X X
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