ORDER
S.L. Peeran, Member (J)
1. This appeal arises from Order-in-Appeal No. 276/97(M) dated 17-10-1997 passed by Commissioner (Appeals), Chennai holding that Chemical storage tank cannot be considered as capital goods and hence confirmed the denial of Modvat credit to the extent of Rs.36,585/-. The appellants had pleaded that raw materials are required to be stored only in the storage tank as they are in liquid form and cannot be stored in warehouse or godown. They had pleaded that the tanks are used for storage of raw materials which are used in the manufacture of the final products and the tanks form part of the Chemical plant of the appellants. The plea was not accepted by both the authorities.
2. I have heard both sides in the matters. Ld. Advocate relies on large number of Tribunal judgments which has conclusively held that Storage tanks used for storing raw materials connected with process of manufacture is required to be treated as capital goods for granting Modvat credit under Rule 57Q. In this regard, reliance is placed in the case of Addition Paints & Chemicals Ltd. v. CCE as reported in 1999 (110) E.L.T. 951 (Tribunal). Further reliance is placed on the decision in the case of Bhansali Engg. Polymers Ltd. v. CCE as reported in 1999 (105) E.L.T. 213 (Tribunal) wherein also a similar view has been taken. The same view has been expressed in the case of Smithkline Beccham Consumer Healthcare Ltd. v. CCE as reported in 1999 (105) E.L.T. 216 (Tribunal) and also in the case of S.R.F. Ltd v. CCE as reported in 1999 (106) E.L.T. 317 (Tribunal). A similar view had been expressed in the case of Dabur India Ltd. v. CCE as reported in 1998 (98) E.L.T. 674 (Tribunal) and also in the case of Lupin Laboratories Ltd. v. CCE as reported in 1999 (114) E.L.T. 867 (Tribunal).
3. Ld. SDR reiterates the departmental contention.
4. On a careful consideration, I notice that the issue is no longer res integra and in all these cited judgments it has been held that a storage tank for storing chemicals which are used in the manufacture of final product is required to be treated as capital goods under Rule 57Q of the CE Rules. Applying the ratio of the cited judgments, the impugned order is set aside and the appeal allowed with consequential relief, if any.
