At, Customs Excise Service Tax Appellate Tribunal South Zonal Bench At Chennai
By, THE HONOURABLE MS. JYOTI BALASUNDARAM
By, VICE PRESIDENT & THE HONOURABLE DR. CHITTARANJAN SATAPATHY
By, TECHNICAL MEMBER
Shri M.S.Nagaraj, Advocate. Shri V.V.Hariharan, JCDR.
Per Jyoti Balasundaram
For the reasons recorded below, we waived predeposit of duty, interest and penalty and proceeded to decide the appeal itself at this stage with the consent of both sides as the issue stands covered by a precedent decision of the Tribunal.
2. We have heard both sides. The issue in dispute is as to whether lancing pipes used for feeding of oxygen into the blast furnace is to be treated as an input or as capital goods the case of the department is that lancing pipes are capital goods and therefore the assessees could have only taken credit to the extent of 50% in a financial year instead of which they have taken 100% credit. We find that in the case of Collector of Central Excise, Raipur Vs Hira Ferro Alloys Ltd. [2000(118) ELT 94], the Larger Bench of the Tribunal has held that lancing pipe used for evacuating molten metal from the furnace is to be regarded as input used in relation to manufacture and eligible to MODVAT credit under Rule 57A of the Central Excise Rules, 1944. In the case of inputs, there is no restriction of credit in any particular financial year. The ratio by th
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e Larger Bench being squarely applicable to the facts of the present case, we set aside the impugned order and allow the appeal.