1998 (4) TMI 395

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..... - The Appellants claimed the benefit of Modvat credit under Rule 57Q for (i) Insulyte II, (ii) Whytheat-K which was high Aluminium mortar to line the furnace of bricks (iii) liquid Binders and (iv) Calundum materials which again were used for joining the bricks in the furnace. The Assistant Commissioner observed that the goods were essentially refractory items, that they were used for the main....

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....uts under Rule 57Q. He cited another judgment in the matter of Synthetics and Chemicals Ltd. v. C.C.E., Kanpur reported in 1997 (89) E.L.T. 793 wherein the black lay flat tubing being lining materials of tanks was held to be so eligible. As regards the objection that the inputs were classifiable under a chapter different from those of the machines; he relied upon the clarification given by the Min....

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....als for erection and fabrication of blast furnace were denied Modvat credit under Rule 57Q. 4. I have carefully considered the submissions made by both sides. It has been brought out in the Ministry's clarification cited that where the capital goods claimed were capable of falling under the ambit of clauses (a) to (c) of explanation, they should be so allowed, even when the specific descript....

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....hinery in which it is used. The EXIM Policy 1988-89 defined accessories as a part or assembly that contributed to the effectiveness of a piece of equipment without changing its basic functions. 6. The furnace is used for bringing out a change in the material subjecting it to intense heat. The refractory lining is an essential part of the furnace. The refractory and calundum are used either t....