Customs, Excise and Gold Tribunal - Mumbai
Indian Seamless Steels & Alloy Co. vs Commissioner Of Central Excise, ... on 23 August, 2001
ORDER J.H. Joglekar, Member (T)
1. The issue involved in this appeal is denial of modvat credit on EOT crane, ultrasonic flow detector and other goods like beams/angles/shapers etc. in terms of Rule 57Q of the Central Excise Rules, 1944. The Commissioner held that the material handling machine did not bring about any change in any substance for the manufacture of final product and therefore was not eligible. He cited the Tribunal order No.551/96 WRB dated 16.2.96 in the case of Sandvik Asia holding that measuring apparatus did not qualify. As regards the third input, he did not make any specific observation.
2. I find that the issue stands covered in the several judgments of the Tribunal. The present appellant used the EOT crane for transfer of molten materials. In identical circumstances, modvat was allowed by the Tribunal in the case of Usha Ispat Limited [1999(112)E.L.T.470]. In their own case also EOT crane was held as admissible input vide Order No.1521/97/WRB dated 14.4.97. The ultrasonic flow detector is used for tracing any flow in the castings made. In the absence of such detector, the manufactured product would be defective. Therefore, this equipment clearly falls under the parameter of Rules 57Q. As regards beams/angles/shapes etc. their uses is permitted in terms of the Tribunal judgment in the case of H.E.G.Ltd. [2001(127)E.L.T.235}.
3. The law having been so settled in favour of the assessee, the appeal is allowed with consequential relief, if any, according to law.
(Dictated in Court)