Customs, Excise and Gold Tribunal - Delhi
Cce, Chandigarh vs M/S. Bhusan Alloys & Steels Ltd. on 2 February, 2001
ORDER
Lajja Ram
1. In the present reference application, the Commissioner of Central Excise, Chandigarh had prayed that the following questions of law be referred to the Hon'ble Punjab & Haryana High Court:-
1. Machine, Machinery, Plant, Apparatus, Tools or Appliances etc. used for producing or processing of any goods or for bringing about any change in any substance in or in relation to the manufacture of final products, are ineligible for Modvat Credit under the exclusion clause of Explanation to Rule 57 A(1). Foundary Flux, IRL Mix, Refractories and Mortar be covered in the excluded category of items in the explanation to Rule 57 A(1)?
2. The items Machine, machinery, plant, etc. have been used in the exclusion clause made Rule 57 A(1) in a general sense. If their constituents are taken as inclusive inputs when the plant or machines are not, will not the exclusion become superfluous and meaningsless.
2. I have heard Shri Swatanter Kumar, JDR and Shri J.S.Agarwal, Advocate. I find that the Tribunal following the Calcutta High Court decision in the case of Singh Alloys and Steels Ltd. Vs. Asstt. Collector of Central Excise = 1993 (66) ELT 594 (Calcutta) had taken a view that the modvat credit in respect of mortar, castable, refractory, ramming mass, foundry flux and chemicals was admissible under Rule 57 A of the Central Excise Rules, 1944.
3. The ld. Advocate referred to the decision of the Karnataka High Court in the case of Escorts Ltd. Vs. Collector of Central Excise, Bangalore - 2000 (120) ELT 75 (Karnataka) wherein the Hon'ble Karnataka High Court had held that the ramming mass and fibre glass filter mesh being chemical and resin, were not excluded by Clause (b) (1) of Explanation to erstwhile Rule 57 A of Central Excise Rules, 1944 and, therefore, were eligible for credit. He also submitted that the Tribunal in the appellants' own case had declined to make a reference to the Hon'ble High Court as reported in the Reference Order No.R/254/2000 NB (SM) dated 8.12.2000.
4. As the matter has already been settled in the above manner, I do not consider it to be a fit case for making a reference to the Hon'ble High Court. The reference application is dismissed. Ordered accordingly.
Order dictated & pronounced in the Open Court on 2.2.2001.