9911796707
TMI Blog1997 (7) TMI 167X X X X Extracts X X X X X X X X Extracts X X X X ..... galore. In the course of the manufacturing process the petitioner makes use of Ramming Mass and Kalminax Sleeves as lining material in the electric arc furnace and as insulating material for maintaining the temperature of the molten metal poured into castings Modvat credit for both these items was availed by the petitioner in terms of Rule 57A of the Central Excise Rules on the premise that the same were "Inputs" used in the manufacture of the final product. The Central Excise Authorities were however of the view that the credit availed of by the petitioner, was not legally admissible to it as the two items mentioned earlier were not "inputs" in the true sense of the said expression. Notices were accordingly issued to the petitioner to show ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... puts" within the meaning of the said Rule. 3. I have heard Mr. Radesh Prabhu, learned Counsel appearing the petitioner and Mr. Mukunda Menon for the Respondents. The Writ petitions do not spell out any reason much less a compelling one why Rule 57A of the Central Excise Rules, could be considered to be ultra vires of the Constitution. All that is stated is that since Rule 57A excludes substances like Ramming Mass and Kalminax Sleeves etc., from the purview of the expression "Inputs", the same makes an unreasonable classification, and that the Rule is arbitrary in nature. Apart from the fact that the petitioner has on a true and correct interpretation of the Rule, accepted the position that the same excludes substance like Ramming Mass and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bringing about any change in any substance in or in relation to the manufacture of the final products; (ii) Packaging materials in respect of which any exemption to the extent of the duty of excise payable on the value of the packaging materials is being availed for packaging any final products; (iii) Packaging materials the cost of which is not included or had not been included during the preceding financial year in the assessable value of the final products under Section 4 of the Act; or (iv) Cylinders for packing gases." 4. From a bare reading of the rule it is apparent that the same classifies for purposes of Modvat credit "inputs" that go into manufacture and are used in or in relation to the manufacture of final products includin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case touching upon the constitutional validity of the Rule must therefore fail. 5. Coming then to the question whether Ramming Mass and Kalminax Sleeves can be said to be "inputs", it is essential to note the use to which the said material is put. The adjudicating authority and so also the first Appellate Authority have concurrently come to the conclusion that Ramming Mass is in the form of a powder and is used as lining material in the electric arc furnace to avoid erosion of the brick lining while Kalminax Sleeves are heat insulating material used to maintain temperature of molten metal poured into the castings and also to eliminate shrinkage of the castings. If that be so all that remains, to be seen is whether in the light of the said ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
