2008 (9) TMI 102

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..... [Order per: Deepak Gupta, J.]. - All the aforesaid Excise and Reference Petitions are being disposed of by a common judgment as the following common questions of law are involved in all the cases. "1. Machine, machinery, plant, apparatus, tool or appliances, etc., used for producing or processing of any goods or for bringing about any change in any substance in or in relation to the manufactur....

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....urpose of this rule, "inputs" includes - (a) inputs which are manufactured and used within the factory of production in or, in relation to, the manufacture of final products, and (b) paints and packaging materials, but does not include (i) machines, machinery, plant, equipment, apparatus, tools or appliances used for producing or processing or any goods or for bringing about any change in any ....

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....upon a judgment of the Karnataka High Court in 1998 (98) E.L.T. 81, titled Canara Steel Ltd. v. Union of India & others, wherein the Karnataka High Court had disallowed the claim of the manufacturer for the grant of Modvat credit benefit by holding that Ramming Mass, etc., are used as lining material and insulating material for electric are furnaces and are also used for the brick lining and they ....

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....hat these cases are squarely covered by the judgment of the Apex Court in Escorts Mahle's case (supra). 9. In view of the above discussion, we answer question No.1 by holding that Ramming Mass, Foundry Flux, Mortar, ILR MIX and Castable Powder are inputs within the meaning of explanation to Rule 57A and hence MODVAT can be claimed in respect of the same. As far as question No. 2 is concerned, we ....