BENGAL FERRO ALLOY AND STEEL LTD Vs. COLLECTOR OF CENTRAL EXCISE
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
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K. Sankararaman, Member (T) -
(1.) THE appeal by M/s. Bengal Ferro Alloys & Steel Ltd. is against the Order-in-Appeal dated 2-4-1990 passed by the Collector of Central Excise (Appeals), Calcutta upholding the Order-in-Original dated 21-9-1989 passed by the Assistant Collector of Central Excise, Durgapur Steel Division, Durgapur. By his said order the Assistant Collector had disallowed Modvat credit on Ramming Mass used by them.
(2.) Shri R.M. Das, learned Consultant appeared for them during the hearing of their appeal before us. He referred to the contentions raised in the appeal and pleaded that the appeal be allowed.
Shri A. Choudhury, learned Departmental Representative opposed the contentions raised in the appeal. He supported the order of the lower authorities. He submitted that the matter is covered by two decisions of the Tribunal. These are -
(1) Sathya Steel Strips Pvt. Ltd. v. Collector of Central Excise reported in 1988 (38) E.L.T. 485.
(2) Mukand Iron & Steel Works Ltd. v. Collector of Central Excise reported in 1990 (48) E.L.T. 552 (Tri.).
These decisions are on the same questions of modvat credit for Ramming Mass used for steel manufacture. He, therefore, pleaded that the appeal be dismissed.
(3.) WE have considered the submissions made by both the sides. WE have perused the record. WE find that the Collector (Appeals) as well as the Assistant Collector have followed the South Regional Bench decision in the Sathya Steel Strips case which was cited before us by the learned Departmental Representative. It was held by the Tribunal in the said case that Ramming Mass is used to coat the bricks with which the furnace is lined in order to withstand the high degree of heat in melting iron and that being so, Ramming Mass is essentially a part of the furnace and would, therefore, be in the nature of part of machinery/equipment used for producing the final product, namely, steel ingots. Quoting the decision, the Collector (Appeals) has held in his impugned order, that the Ramming Mass is not considered as input for availing of the benefit of modvat credit under Rule 57A and rejected their appeal.;
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