Customs, Excise and Gold Tribunal - Bangalore
M/S Silcal Metallurgic Ltd., Palakkad vs The Commissioner Of Central Excise, ... on 25 September, 2001
Equivalent citations: 2002(149)ELT711(TRI-BANG)
ORDER
Shri G.A. Brahma Deva
1. This appeal arises out of and is directed against the order in appeal dated 31.10.96., passed by the Commissioner of Customs and Central Excise, Cochin.
2. The short point to be considered in the instant case is whether Carbon Electrode Paste Grade 'C' is capital goods and therefore eligible for modvat credit in terms of Rule 57Q of the Central Excise Rules 1944. It was contention of the party that the use of carbon electrode paste grade 'C' for lining the inner side of the electric Arc furnace and in other words for tamping the furnace which is indispensable for lining of Ferro Alloy Furnace and on this basis the appellant claims that this is an accessory to the furnace and therefore capital goods. The Commissioner (Appeals) in the impugned order observed that functions of electric are furnace, carbon electrode paste grade 'C' used itself is akin to ramming mass. The counsel appearing for the appellant relied upon the decision of the Tribunal in the case of Comet Steel Ltd. Vs. Commissioner of Central Excise, Aurangabad reported in 1998 (103) ELT 422 as well as Daga Ceramics Pvt. Ltd. Vs. Commissioner of Central, Jaipur reported in 2000 (117) ELT 313. In the respective cases, it was held that Cerwool Ceramics Fibre Blankets being used as lining material for furnaces is an integral part and/or accessory of furnace and the party is eligible for availing modvat credit under rule 57Q of the Central Excise Rules, 1944. I take note to the fact that even assuming it is akin to ramming mass is also eligible item for availing credit as it was held by the Tribunal in the case of ABB Tools by Larger Bench following the ratio of the decision of the Calcutta High Court. In the facts and circumstances and in view of the aforesaid decision of the Tribunal, I accept the contention of the party and accordingly this appeal is allowed with consequential relief if any.
(Pronounced and dictated in the open court.)