Modvat credit on ramming mass used in furnace lining was held admissible as an input under excise law.

Modvat credit was treated as available for ramming mass used in the lining of a furnace in the manufacture of the notified finished product under Rule 57-A of the Central Excise Rules, 1944. The court followed an earlier Division Bench view that the substance qualified as an input, and that denial of credit on duties paid for such items was not correct in law. Credit was therefore held admissible in favour of the assessee and against the department.

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Issues: Whether Modvat credit was available in respect of ramming mass used in the lining of a furnace used in the manufacture of the notified finished product under Rule 57-A of the Central Excise Rules, 1944.

Analysis: The issue was treated as covered by an earlier Division Bench decision, which held that the substance was to be regarded as an input and that denial of Modvat credit on duties paid on such items was not correct in law.

Conclusion: Modvat credit was held to be available on ramming mass used in furnace lining, in favour of the assessee and against the department.

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