ORDER
S.S. Kang, Member (J)
1. Heard both the sides.
2. The Revenue filed this appeal against the Order-in-Appeal passed by the Commissioner (Appeals) whereby the benefit of Modvat credit on Cylindrical Vertical HDPE Tanks was allowed as capital goods.
3. The contention of the Revenue is that the tanks in question are not covered under the definition of capital goods nor can be considered as accessories of the main processing plant.
4. In this case, in reply to the show cause notice, the respondents took specific plea that the tanks in question are used in the manufacturing process in the factory as accessory to their main processing plant. The specific use of these tanks is to measure the chemicals/liquids to be changed into mixing tanks and are connected to vertical tanks through pipes and other fittings. In the mixing process, various chemicals are required in definite quantities and therefore without help of these cylindrical vertical the respondents are not able to complete the process of manufacture of their final product. Further, taking into consideration this factual position, the adjudicating authority dropped the proceedings on the ground that the tanks in question are essential part/accessory of mixing process/mixing tanks which are classifiable under Tariff Heading 8479.90. The Revenue filed the appeal and the Commissioner (Appeals) dismissed the appeal.
5. In fact these cylindrical vertical tanks are used as measuring equipment and are attached to the mixing tanks, is not disputed by the Revenue. In these circumstances, I find no infirmity in the impugned order. The appeal is rejected