1996 (8) TMI 223

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....ngaged in manufacture of Cast iron and Steel casting and during the process of manufacture, when the casting are taken out from moulding box, the same have sand particles attached and to remove the same, Shot Blasting process is undertaken by putting the article into shot blasting machine. Where Steel Shots are used. They claim that Shots are broken after use and rendered into powder and cannot be used again. It is claimed that the process is essential to make the castings marketable and ready for despatch. Claiming that Steel Shots are used in relation to the manufacture of their final product, in their declaration filed under Rule 57G of the Rules, they also declared this item for claiming Modvat credit benefit and accordingly, took credi....

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.... NRB of the Tribunal in Indian Rayon and Industries Ltd. v. Collector - 1995 (76) E.L.T. 358 (Tribunal) he has submitted that where Steel Balls used as grinding media have been held as eligible to get Modvat credit. 4. Mr. Telajia, the Ld. JDR has however pleaded that the basic function of Steel Shots is to remove the sand and would go as a tool and thus excluded from availment vide proviso to Rule 57A. As to the plea of time bar, his contention is that the declaration filed vide Rule 57G did not specify the use and as such merely declaring them as input was an act of misrepresentation and non-disclosure of use amounted to suppression. 5. Considering the submissions and going through the records, it is admitted by the Appell....

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....s. The only direct decision of a High Court of Calcutta in Singh Alloy Steel Ltd. v. A.C. of C.E. - 1993 (66) E.L.T. 594. Goods which are not raw materials converted into finished products and which are charged into furnace as fettling materials to dissolve and seal the crevices in the refractory walls of the furnace and are consumed in the process have been held to be goods used "in relation" to the manufacture of finished goods. The High Court explained that the exclusion clauses of the explanation to Rule 57A relate to items which would otherwise have come within the definition of inputs. This would mean that machine, machinery and other goods referred to in exclusion clause (i) would, but for the exclusion fall, within the ambit of the ....