Crucibles as consumable inputs for Modvat credit where they are used up in the melting process.

Crucibles used in the manufacture of zinc ingots were treated as eligible inputs for Modvat credit because they were not viewed merely as plant or apparatus; they were consumed in the melting process and functioned as a melting pot for molten metal. Relying on earlier reasoning that crucibles are consumed during manufacture, the Tribunal applied the same factual and legal position and allowed Modvat credit under Rule 57A.

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Issues: Whether crucibles used in the manufacture of zinc ingots qualified as inputs eligible for Modvat credit under Rule 57A of the Central Excise Rules.

Analysis: The issue turned on whether the crucibles were merely a melting apparatus or whether they were consumed in the course of the manufacturing process. The Tribunal noted that an earlier decision had held crucibles to be eligible inputs because they functioned as a melting pot for molten metal and got consumed during the process of melting. Applying that reasoning, the Tribunal found the same factual and legal position present in the appeal before it.

Conclusion: Crucibles were held to be eligible inputs, and Modvat credit was permissible.

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