2002 (11) TMI 729

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....lant. Shri S.C. Puskarna, SDR, for the Respondent. [Order]. -  The appellants were engaged in the manufacture of ferro alloys and were availing the facility of Modvat credit on inputs and capital goods under Rules 57A and 57Q of the Central Excise Rules, 1944 during the period of dispute (January to November, 1996). During the said period, they took Modvat credit on a number of items....

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.... allowed Modvat credit to the extent of Rs. 4,68,164/- and disallowed the remaining credit amounting to Rs. 4,02,045/-. These appeals are against the denial of Modvat credit to the extent of Rs. 4,02,045/- on the following items :- 1. M.S. Channel 2. Beams 3. Bars 4. Rounds 5. CTD Bars 6. Copper Scraps 7. Joist 8. Plate Cutting The Commissioner held that the aforemention....

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....c furnace. No valid reason has been stated in the impugned order as to why the remaining items (listed above) were found not to have been used in the manufacture of electric arc furnace. 3.  The learned DR reiterates the findings of the adjudicating authority. 4.  I have examined the submissions. On a perusal of the show cause notices, I find that the goods listed in the Annexures ....

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....' to be excisable under the Central Excise Act and, on account thereof, any item used in the manufacture of the furnace would not qualify as inputs for Modvat credit under Rule 57A. This view has been rejected by the Commissioner himself, who has recognized the electric arc furnace as capital goods under Rule 57Q and has held as under :- "For being capital goods no such condition is required, t....