MUKUND IRON AND STEEL WORKS LTD Vs. COLLECTOR OF CENTRAL EXCISE

JUDGEMENT

(1.) THIS is an appeal directed against the order of the Collector of Central Excise (Appeals), Bombay bearing No. R-642/BII-249/88 (File No. V-2 (CH. 72) 1012/88) dated 24-11-1988 rejecting the appellants' appeal for availment of MODVAT benefit in respect of certain inputs used in or in relation to the manufacture of iron and steel castings.

(2.) Brief facts for the purpose of disposal of this appeal are as below:

(3.) SHRI T.R. Andhyarujina, the learned senior advocate for the appellants, at the outset stated that in the case of refractories, the mater has already been argued by him and the issue also has been decided in favour of the revenue under order No. 617/89 dated 4-7-89 [printed in 1990 (45) ELT 84]. Since the issue is already settled, he is not arguing with regard to the eligibility of the input benefit in respect of refractories. As per the aforesaid decision, MODVAT credit in respect of refractories is not eligible and demand in respect of the same is enforceable. However, as regards other inputs, his arguments were as under. Before dealing with each item of inputs, his general argument is that in the case of all the inputs they are very necessary for the manufacture of steel castings and they are used in or in relation to the manufacture of steel castings and it is not disputed that both inputs as well as the final product are notified under the MODVAT scheme. The dispute is only with regard to whether these will be covered by the explanation to Rule 57A of the Central Excise Rules or would be hit by the explanation.