2000 (2) TMI 117

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....Justice K. Sreedharan, President]. - This case has been referred to Larger Bench to decide the issue relating to eligibility to Modvat credit in respect of 'Grinding Media'. Identical issue was considered by a Larger Bench of this Tribunal in Collector of Central Excise, Bolpur v. Durgapur Cement Works reported in 1997 (90) E.L.T. 197 (Tribunal). The said Larger Bench referred to another Larger Be....

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....rinding. Grinding takes place on account of the impact of Steel Balls on the raw materials. A part of the Steel Balls on account of severe impact gets damaged and particles and pieces of Steel balls are mixed together with the powdered raw materials and become part of the final product; this takes place though not intended. However, for this reason Steel balls cannot be regarded as raw materials, ....

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....or the latter's performance. Light is also thrown by the Note in HSN that balls are classified according to their constituent material and not as parts. It must also be noticed that Steel Balls are not attached or fixed to the Ball Mill. As pointed out, Ball Mill will commence operation and drum will start rolling or moving, but grinding will taken place only if Steel Balls are present. Thus Steel....

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....T. 305, is with respect, not correct. The distinction drawn in Magnetix (India) Ltd. case - 1996 (86) E.L.T. 317 (Tribunal) with reference to the decision in Electrosteel Casting Ltd. case, 1989 (43) E.L.T. 305 (Tribunal) is, with respect, not correct. The decision in M/s. Associated Cement Co. Ltd. (Appeal No. E/216/91) is per incurium inasmuch as the earlier decisions and relevant aspects and te....