TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Join Channel
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: (i) Whether IRL Dolopatch Mixture used for fetling or lining of the furnace was an eligible input for Modvat credit under Rule 57A; (ii) Whether Modvat credit could be taken on the entire duty shown on the duty paying document, including the portion relatable to packing charges on ferro chromes.
Issue (i): Whether IRL Dolopatch Mixture used for fetling or lining of the furnace was an eligible input for Modvat credit under Rule 57A.
Analysis: The item was used in the furnace in the course of manufacture to protect the furnace from extreme heat and was treated as an input in earlier decisions. No material was shown to displace that view or to show why it should be excluded from the scope of inputs used in manufacture.
Conclusion: The item qualified as an eligible input. The finding was in favour of the assessee.
Issue (ii): Whether Modvat credit could be taken on the entire duty shown on the duty paying document, including the portion relatable to packing charges on ferro chromes.
Analysis: Rule 57A permits credit of the duty paid on inputs as reflected in the duty paying document. The duty amount cannot be split up by the authority to exclude a part said to relate to packing charges, and any subsequent variation at the supplier's end can be addressed under Rule 57E.
Conclusion: Credit of the entire duty amount was permissible. The finding was in favour of the assessee.
Final Conclusion: The Revenue's challenge failed on both issues, and the allowance of Modvat credit as granted below was sustained.
Ratio Decidendi: Where duty on inputs is evidenced by the duty paying document, credit cannot be denied by artificially segregating components of that duty, and inputs used in the manufacture process remain eligible if they fall within the scope of Rule 57A.
TaxTMI 
