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TMI Blog1998 (4) TMI 395X X X X Extracts X X X X X X X X Extracts X X X X ..... laimed the benefit of Modvat credit under Rule 57Q for (i) Insulyte II, (ii) Whytheat-K which was high Aluminium mortar to line the furnace of bricks (iii) liquid Binders and (iv) Calundum materials which again were used for joining the bricks in the furnace. The Assistant Commissioner observed that the goods were essentially refractory items, that they were used for the maintenance of furnace and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed another judgment in the matter of Synthetics and Chemicals Ltd. v. C.C.E., Kanpur reported in 1997 (89) E.L.T. 793 wherein the black lay flat tubing being lining materials of tanks was held to be so eligible. As regards the objection that the inputs were classifiable under a chapter different from those of the machines; he relied upon the clarification given by the Ministry vide Circular No. 37 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of blast furnace were denied Modvat credit under Rule 57Q. 4. I have carefully considered the submissions made by both sides. It has been brought out in the Ministry s clarification cited that where the capital goods claimed were capable of falling under the ambit of clauses (a) to (c) of explanation, they should be so allowed, even when the specific description of such goods came to be embod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olicy 1988-89 defined accessories as a part or assembly that contributed to the effectiveness of a piece of equipment without changing its basic functions. 6. The furnace is used for bringing out a change in the material subjecting it to intense heat. The refractory lining is an essential part of the furnace. The refractory and calundum are used either to bridge the gap between the bricks or to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of blast furnaces was denied. The judgment followed the Supreme Court observation in J.K. Cotton Spinning and Weaving Mills in which it was held that where materials were used for construction of plant (emphasis added) could not be said to be used as plant in the manufacture of goods. This judgment would not apply to this case as in this case it is not claimed that the furnace itself was being b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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