1997 (9) TMI 255

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....nded that the lining materials in question which are essential for the manufacture and are used as components/accessories for the efficient functioning of the kilns/furnaces, are to be extended the benefit of Modvat credit in view of the explanation 1(b) under Rule 57Q. On this contention, the Commissioner held that the Modvat credit has been taken on refractories prior to 16-3-1995 when these were not specified as capital goods under Rule 57Q(1). The Commissioner further held that these are used in kilns-lining purpose only. He disallowed the Modvat credit amounting to Rs. 10,37,606/-. 2. The facts of the case are that the appellants are engaged in the manufacture of iron and steel products. For heating sheets, arc furnace is used.....

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....uct in question was not covered by Rule 57Q then it was fully covered by Rule 57A and the product on which the Modvat credit has been denied is part of the furnace; that furnace is a machinery or a plant. He submits that the exclusion clause under Rule 57A covers only machines, machinery, plant, equipment, apparatus, tools, or appliances etc. and not parts or spares thereof. He submits that since parts and spares of the articles included in exclusion clause are not covered, therefore they are inputs for the purpose of Rule 57A. In support of this contention, he cites and relies upon the decision of this Tribunal in the case of Union Carbide India Limited [1996 (86) E.L.T. 613] and in the case of Ramakrishna Steel Industries Limited [1996 (8....