9911796707
TMI Blog2000 (11) TMI 764X X X X Extracts X X X X X X X X Extracts X X X X ..... December, 1994 to October, 1995. An equivalent amount of personal penalty has also been imposed upon the appellants. 2. We have heard Shri S.K. Bagaria, learned Advocate assisted by Shri Partha Banerjee, learned Advocate, for the appellants and Shri A.K. Chattopadhyay, learned JDR for the Revenue. We will deal with the different items in the following paragraphs :- 2. The benefit of Modvat credit has been denied in respect of Fire Bricks/Refractory Bricks and other Refractories classifiable under Chapter 69, on the ground that the same cannot be considered as inputs, as they did not get transformed into the final products. For holding so, learned adjudicating authority has also referred to some of the decisions of the Tribunal. However ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esins used for making Sand Cores. These are used as binders for keeping the sand in the shape of the core until liquid metal is poured into the cores for pipe making. After each process, the sand core breaks down into loose sand. The appellants contention is that without making Sand Cores with the help of the said chemicals and resins, it is simply not possible or feasible to manufacture the appellants final products. The said binders, chemicals, resins are clearly used in the manufacture of the final product. The appellants have referred to the following decisions in support of their submissions:- (i) 1997 (94) E.L.T. 4 (S.C.) in the case of TELCO Ltd. v. CCE; (ii) 1996 (82) E.L.T. 575 in the case of Shri Ramakrishna Steel I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect of Foundry Chemicals/Fluxes and Coating Materials falling under Heading No. 38.23 and Mixed Rare Earth Metals falling under Heading No. 28.05. According to Shri Bagaria, learned Advocate, Foundry Chemicals/Fluxes of the aforesaid category are Slax-30, Forrogen and other Foundry Fluxes falling under Heading No. 38.23. Slax-30 is a chemical product and is used for coagulating the slag on the liquid metal surface. This helps in removing the dirty particles from the liquid metal and cleaning the same for providing clean liquid metal for making the pipe. These materials are thus directly used as inputs for manufacture of the appellants final products. Forrogen and other Foundry Fluxes help in reducing the skull formation on top of the ladle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in question were used in relation to manufacture of the appellants final products. In spite of this and on a complete non-application of mind, he has disallowed the Credit on the ground that the same do not get consumed in the final product itself. He refers to the Tribunal s decision in the case of C.C.Ex. v. Steel Strips Alloys Limited reported in 1999(32) RLT-299. We agree with the submission of the learned Advocate that inasmuch as the goods are admittedly used in relation to the manufacture of the final product, their consumption during the course of manufacture of the final product is irrelevant. The decision of the Tribunal in the case of Steel Strips Alloys Ltd. referred to the learned Advocate, squarely covers the issue in their f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CE). Reference has also been made to the clarification issued by the Ministry of Finance vide its Circular No. 211/45/96-CX, dated 14-5-1996. The said Circular, submits the learned Advocate, has been ignored by the Commissioner. We agree with the submission of the leaned Advocate that as long as there is no dispute about the duty-paid character of the goods, the fact that the address of the head office was mentioned in the duty paying documents instead of the address of the factory, Modvat credit cannot be legally denied to the appellants. 8. Similarly, it has been alleged in respect of the invoices of Orissa Cement Limited that inputs namely, Portland Cement was not industry specific and could be used by a large class of persons and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . A.B. Tools Limited reported in 1994 (71)E.L.T. 776, holding ramming marks to be admissible inputs. As such, following the ratio of the same, we allow the Credit in respect of ramming marks. 11. A small portion of the Credit has been denied on the ground that the declaration did not cover UNISET-710 either by name or by tariff sub-heading. The appellants have explained that UNISET is a brand name of the manufacturer. But the material is actually a binder which is already declared by them. We agree that the Modvat credit could not be denied on this ground. The same is accordingly allowed. 12. As regards the Modvat credit of Rs. 4,535.00 denied on the basis of wrong name in the invoice, the appellants admit that wrong invoice was handed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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