ORDER
Shri C. Satapathy, Member (T)
1. Heard both sides. Shri R.H. Shah, learned Manager Excise of the appellant company submits that the appellants have been denied the Modvat credit of varying amounts in respect of 13 different capital goods listed below:-
Sr.No.
Description of C.G.
Heading No.
Usage
Applicable Case Law
1.
Transformer Box
8537.00
Electrical Machinery
&spares.
Necessary for supply of electricity to various machines
2003 ( 158) ELT 161 (T)
2001(130) ELT397(T)
2001(137) ELT 1341 (T)
1997 (95) ELT 665(T)
1996 (88) ELT 532 (T)
Modvat Rs.1095-00
2,
Absorption Heat Pump
8418.00
Pump is required for
maintaining to control temperature of critical chemical conversion process
2002(149)ELT 736
2001(138)ELT 1436
1996 (83) ELT 221
Comm.(A)
1996 (88) ELT 753 (T)
Modvat Rs.3,42,1 30=00
3.
Furacin Powder &
Syrup
3214.00
Used in our reaction
vessel which are lined with Acid resisting tiles to resist highly corrosive
chemical conditions
1. 1999 (109) ELT 629
(T)
2. 1999 (111) ELT 281
(T)3. 1998 (101) ELT 131
(T) 4. 1991(96) ELT (1)
–
&
high temperatures. This is also used as mortar for jointing acid resisting
tiles inside the vessels, Therefore, part-& parcel of equipments. These
items are also refactory material which are used to project the machinery
from the corrosion & are
chemical binder used for fixing the acid, alkali & heat resistant bricks
& tiles in reaction vessels & tiles in reaction vessels &
equipments.
Modvat
Rs.2,87,541=00
4.
PP/FRP
Pipes/ Elbows
3917.00
Essential
accessories without these
1.
2002 (150) ELT 765
2.2001 (137)ELT 1341
accessories final
products could not be manufactured. In certain process taking out of the
processed material openly from processing vessel is not permissible because
of the hazardous nature &, different
tow or high temperatures under such circumstances PP/FRP Pipes/ Elbows are
used.
3. 1998 (100)ELT 52(T)
4.1998(102) ELT 572 (T)
5.1998(104) EVT486 (T)
6.1998(99)ELT54(T)
7.1997 (96) ELT 404(7)
Modvat Rs. 62.143=00
5.
Air Conditioner
8415.00
Used in the process
plant microprocessor based process control units arc installed in the process
plant.
2002 (150) ELT 570 (T-Del)
2001 (138) ELT 1436 (T- Chennai)
2000 ( 124) ELT 541 (T)
2000 (123) ELT 1 119)
(T)
19(IP8)ELT47(T)
6
Modvat Rs. 19,800=00
Rupture Disc
7326.00
Treated as safety
device. These discsare used as specialsafety measures.
1999(114) ELT867(T)
1998 (100) ELT 52 (T)
1998 (99) ELT 54 (T)
ModvHt Rs. 3608=00
7.
Glass Beads
7013.00
Used as Miling mediain
the millingmachines. Used.
1 197 (95) ELT 655 (T)
Modvat Rs. 43,724=00
8
M-Seal
3214.00
Used for repairs ofprocess
equipments.
2002 (147) ELT 792 (T-Bang)
2001 (137) ELT 1341 (T-Del)
Moilvat Rs. 2681-83
9
Ion Exchange Resins
&Polymers
3914.00
Use for purificationof brine & water byIon
Exchange system.These Ion ExchangeTowers which aremachines fallingunder 8479.
19. IonExchange is atreatment by which
Part of the equipment
certain salts &
other impurities are removed. Therefore these to be considered to be parts of
Ion Exchange Tower.
Modvat Rs. 4.86. 583-00
10
M.S. Shell & Heal
Exchanger
8419.99
Used for heating ofprocess gases during
manufacturing operation in sulphuric acid plant.
2002 (150) ELT 69;
(T-Del)
2000 (116) ELT 464 (T)
2000 (124) ELT 54 1 (T)
1998 (101) ELT 422 (T)
Modvat Rs. 18.750=00
11
Hand Trollies
8716.00
Used for transforming
Raw material & Semi-finished goods from one place to another
I. 1 996 (87) El .T 91
(T)
2. 1997 (93) ELT 457 (T)
3. 1996 (86) ELT 1 77
(SC)
4. 1998 (98) ELT 674 (T)
place
Modvat Rs. 5163-00
12
‘M S Process Tank
7307.00
Used for material
storing equipment & used for keeping the material during the process
of” manufacture
2002(I50)ELT 765(T)
1999 (1 14) ELT 363 (T)
1999(106) ELT 317(T)
I998(98)ELT 674 (T)
1999 (1 13) ELT 239 (T)
Modvat Rs. 42, 600=00
13
Whytheat – K
3816.00
Part & parcel of
equipment 2000 (126)ELT915(T)
2002 (147) ELT 1000
2001 (46) RLT 197-CEGAT
Modval Rs. 20680=00
2. He also states that in view of the various citations given above, the appellants are eligible for Modvat credit on the impugned goods. It is his contention that the lower authorities have not taken into account the various decisions of the Court and Tribunal while considering the claim of the appellants, As such, he prays for setting aside the orders and remanding the matter back to the original authority for re-adjudication. Shri M.H.Sheikh, learned J.D.R. appearing for the department has no objection to this proposal. Accordingly, with the consent of both sides, the impugned orders are set aside and the matter is remanded to the original authority for fresh adjudication. The appellants shall be afforded a reasonable opportunity of hearing before passing a fresh order. The appeal is allowed by way of remand.
(Dictated in Court)