Customs, Excise and Gold Tribunal - Delhi
Goetze India Ltd. vs Commissioner Of Central Excise on 17 September, 1997
Equivalent citations: 1997(96)ELT323(TRI-DEL)
ORDER G.R. Sharma, Member (T)
1. By the present appeal, the appellants have assailed the order of the ld. Commissioner (Appeals). The Commissioner (Appeals) held that no Modvat credit will be admissible on Grinding Wheels, Honing Stones/Sticks and Graphite Crucibles. Being aggrieved by this order, the Appellants have come up in appeal before us.
2. Briefly stated, the facts of the case are that the Appellants are engaged in the manufacture of Pistons, Piston Rings and Cylinder liners, LMCs, etc. They are availing the benefit of duty paid on inputs under the Modvat scheme. The Department alleged that Modvat credit of duty was not available on 7 items set out in the Order-in-Appeal. Examining the admissibility item-wise, the ld. Commissioner (Appeals) disallowed Modvat credit on 3 items as indicated in the preceding paragraph.
2. Shri P.S. Bedi, the ld. Consultant appearing for the Appellants, submits that Grinding Wheel is made out of Aluminium Oxide/Silicon Carbide greaius and bound in a circular form having a bore as per required diameter of the grinding machine; that Grinding wheel is fixed with the machine as Tyres are fixed on the Rim. He submits that Grinding wheel has been allowed the benefit of Modvat credit by the Tribunal in its order in the case of M/s. Escorts Limited [1996 (16) RLT 712].
3. About Honing Stones/Sticks, the ld. Consultant submitted that the item is used for honing/polishing the bore and cylinder liner. He submits that the function of honing stone/stick is similar to that of the Grinding Wheel. The ld. Consultant submits that it is not one of the items covered by exclusion clause in the explanation to Rule 57A. He submits that it is neither an appliance nor a tool, but is only a part of the machine and, therefore, submits that in terms of the decision of this Tribunal in the case of M/s. Union Carbide Industries Ltd. [1996 (15) RLT 144] Modvat credit will be admissible on this item.
4. Explaining the function of Graphite Crucible, the ld. Consultant submits that they are only components or parts/Utensils, but of a larger dimensions. He submits that this item is identical to hot tops. He submits that hot tops is already allowed the benefit of Modvat concession by this Tribunal in its judgment in the case of M/s. Kakkar Complex Steels (P) Ltd. [1996 (87) E.L.T. 710]. He also submits that similar view was taken by the Tribunal in the case of M/s. Oswal Steels contained in Tribunal's Order No. A/1895/96-NB, dated 12-7-1997.
5. Summing up his arguments, the ld. Consultant submits that in view of the above submissions, Modvat credit will be admissible to all the above 3 items and prayed that the appeal may be allowed.
6. Countering the arguments of the ld. Consultant, Shri P.K. Jain, the ld. SDR, reiterates the findings of the lower authorities.
7. Heard the submissions of both sides. Perused the case law as well as the evidence and technical write-up provided in the Order-in-Appeal as well as in the Appeal Memo filed by the Appellants.
8. We note that Grinding Wheel is already covered by the decision of this Tribunal in the case of Escorts Limited (supra). We do not see any reason to disagree with the findings in the above case. We, therefore, hold that Modvat credit will be admissible to Grinding Wheel.
9. We note that Honing Stone/Stick is similar to Grinding Wheel insofar as the function of the item is concerned. We also note that it is not a self-contained machine/appliance/tool etc., but is only a part of the grinding machine. In this view of the matter and looking to the view taken in respect of Grinding Wheel, we hold that Modvat credit will be admissible to Honing Stone/Stick.
10. Insofar as Graphite Crucible is concerned, we find that they are containers to hold molten metal. We have consulted the Second Edition of McGraw-Hill Dictionary of Scientific and Technical Terms. We find that it is in the form of a Utensil, may be of larger size. It is not in the form of a machine/equipment etc. which are covered by the exclusion clause in the explanation to Rule 57A. Having regard to this view, we hold that Modvat credit will be admissible to Graphite Crucibles also.
11. In the result, the Appeal is allowed with consequential relief, if any, admissible to the appellants in accordance with law.