Customs, Excise and Gold Tribunal - Tamil Nadu
The India Cements Ltd. vs Commissioner Of Central Excise, ... on 1 August, 2001
Equivalent citations: 2001(136)ELT1313(TRI-CHENNAI)
JUDGMENT
S.L. Peeran, Member (Judicial)
1. This appeal arises from order in Appeal No. 491/96 (H) CE dt. 28.11.96 by which the Commissioner (Appeals) has decided the allowance and disallowance of Modvat credit on various items. The appellants are aggrieved for non grant of Modvat Credit in respect of three items, viz:
i. Welding Electrodes ii. MS Plates iii. OPC Cement iv. Nalcol 2000
2. Appearing on behalf of the appellants Shri Kuppuswamy, Ld. Consultant submits that with regard to the Welding Electrodes, the matter is covered by the Larger Bench decision rendered in the case of Associated Cement Company Ltd. v. CCE Belgaum reported in 1999 (108) ELT 47 (T) and also that of the decision of this Bench rendered in the case of MALCO v. CCE reported in 2001 (144) ELT 529 AND 2000 (122) ELT 875. The judgment rendered in the case of MALCO also covers MS Plates. As regards item Nalcol 2000, he submits that the same is covered by the decision rendered in the case of CCE v. Diamond Cement reported in 2001 (127) ELT 777 (T) as the item is used for treatment of water by which the electricity is generated which in turn is used in the manufacture of cement. The Ld. Consultant submits that he is not pressing for the claim of Modvat with regard to the Cement.
3. Heard Ld. DR who reiterates the department's view and submits that the Revenue has filed an appeal before the Apex Court in the case of Jawahar Mills Ltd. v. CCE and the matter may be kept pending.
4. After careful consideration of the submissions made by both the sides, we are not agreeable with the DR's plea for keeping the matter pending as there is no stay granted by the Hon'ble Apex Court in the case of Jawahar Mills Ltd. In the Larger Bench decision rendered in the case of Jawahar Mills Ltd., the Tribunal has clearly upheld the assessee's plea for grant of Modvat credit for Welding Electrodes. The same view has been expressed in the case of ACC Ltd. v. UOI. There are number of other judgments which have been noted in this case. Therefore, we allow the claim of Modvat credit on Welding Electrodes.
5. With regard to MS Plates, the issue is covered by the judgment rendered in the case of MALCO v. CCE in terms of para 12 of the said judgment. Accordingly, we allow the Modvat credit on this items in the light of this judgment.
6. As regards, the claim of Modvat credit on Nalcol 2000 the issue is covered by the judgment rendered in the case of CCE v. Diamond Cements (supra). The appellants are also using the item for treatment of water by which electricity is generated which in turn is used in the manufacture of cement. The decision of the Tribunal in the case of Diamond Cement (supra) squarely applies to the item Nalcol 2000 and hence the claim for the Modvat credit is accepted.
7. As the appellants are not pressing the claim for the cement the claim for Modvat credit on cement is rejected. Accordingly we set aside the impugned order on the three items noted above. The appeal is allowed to that extent above.
(order dictated and pronounced in the open court)