Customs, Excise and Gold Tribunal - Mumbai
Shivaji Works Ltd. vs Commissioner Of Central Excise on 20 June, 1997
Equivalent citations: 1999(113)ELT220(TRI-MUMBAI)
ORDER K.S. Venkataramani, Member (T)
1. The appellants herein had filed the writ petition in the Bombay High Court against the Final Order of this Bench in their Order Nos. 147-148/89/WRB, dated 4-12-1989 1990 (50) E.L.T. 50 (Tribunal). In that decision the Tribunal had held that chemicals used in the preparation of 'sand moulds' for the production of steel casting are not eligible for Modvat credit, because the Tribunal held that the sand moulds are in the nature of equipments which is the excluded category input for Modvat purposes and the inputs going in the manufacture of such equipment, Tribunal held will also not be eligible for Modvat credit. The Bombay High Court has disposed of the Writ Petition by its Judgment dated 21-3-1997. The High Court has noted that during the pendency of the petition the Larger Bench decision in the case of Shree Ramkrishna Steel Industries Ltd. v. Collector of Central Excise, 1996 (82) E.L.T. 575, after considering several conflicting decisions of regional Benches has held that the issue must be decided in the Petitioner's favour. High Court further noted that the decision impugned in the Petition was expressly disapproved by the Division Bench of Madras High Court in Ponds (India) Ltd. v. Collector of Central Excise, 1993 (63) E.L.T. 3. The High Court therefore set aside the final order of the Tribunal above and remanded the matter to the Tribunal to re-hear and dispose of the appeals of the petitioners.
2. Sr. Counsel for the appellants Shri Arashad Hidayatullah appearing along with ld. Counsel Shri A.Z. Sheerazi took us through the Larger Bench decision as well as the Madras High Court decision in Ponds (India) Ltd. case. The Larger Bench has held that the view taken by this Bench in the case of the present appellant is not correct and that Chemicals used in the preparation of sand moulds for the production of Iron & Steel Casting will be covered by the wider expression used 'in relation to the manufacture' of articles which occurs in Rule 57A of the Central Excise Rules. Following the above binding decision of the Larger Bench, and having regard to the observation of the Madras High Court, we hold that the appellants herein will be eligible for Modvat credit on chemicals used in the manufacture of sand moulds which are further used for production of steel casting. The appeals are disposed of accordingly.