9911796707
TMI Blog2000 (3) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... ce can be treated as inputs under Rule 57A of the Central Excise Rules, 1944? " 2. Short facts which led to the above issue are as follows. 3. Respondents, M/s. Keshari Steels ( a division of Reliance Ispat Industries Ltd.) are engaged in the manufacture of iron and steel items, namely, continuous cast billets and bars falling under Chapter 72 of the Schedule to the Central Excise Tariff Act, 1985. They are also availing the benefit of Modvat scheme under Rule 57A of the Central Excise Rules, 1944. Respondents were availing credit on ramming mass which are used in or in relation to the manufacture of the final product. Department took the view that respondents wrongly availed credit on ramming mass and oxygen gas as these were not conside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of Canara Steel Ltd. v. Union of India - 1998 (98) E.L.T. 81. View taken therein is that ramming mass is in the form of a powder which is used as lining material in the electric arc furnace to avoid erosion of the brick lining. Consequently, it is more in the nature of a part of the furnace and hence a part of machinery and equipment used for producing the final product. Since ramming mass is not an input used in or in relation to the manufacture of final product, it was held that the manufacturer is not entitled to get Modvat credit of the duty paid on ramming mass. 5. A Bench of two Members of this Tribunal in Modella Steel Alloys Ltd. v. C.C.E., Indore, 1999 (108) E.L.T. 463 (Tribunal) = 1999 (31) RLT 203, after considering the Kar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 (95) E.L.T. A226 [S.C]. Thus, the Tribunal's conclusion that ramming mass and oxygen gas/acetylene gas used in relation to manufacture of final product are eligible to Modvat credit is pending in appeal before the Supreme Court in Civil Appeal No. 2128 of 1997. The question now pending before the Supreme Court is now sought to be referred for decision by the High Court. When the Supreme Court is already ceased of the issue in Civil Appeal No. 2128 of 1997, we consider it advantageous to the parties to refer the matter to the Supreme Court as provided by Section 35H of the Act. 7. In D.B. Madan v. Commissioner of Income-tax, 1992 (60) E.L.T. 679, their Lordships observed : "It is always open to High Court to follow its earlier decision a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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