ORDER
S. S. Sekhon, Member (Technical)
1. Common order is passed since the issues in appeals is common. The issue in this case is the denial of modvat credit on capital goods under Rule 57Q and penalty imposed on the appellants.
2. The appellants have produced a chart showing the capital goods/inputs use and also the case law which are directly covering the items under dispute as well as having persuasive value. This leads to a conclusion that the credit should be eligible.
3. On the perusal of this chart and the DR concurring it is to be held that credit on all items is given in the chart below:
E/159/2000-Mum — NRC LTD vs CCE MODVAT [SIC](SrNo25) PENALTY RS.7,100/-PERIOD APRIL 95
CAPITAL GOODS/INPUTS
USE
COVERED 8V CASE LAWS –
(DIRECT/PERSUASIVE)
Brass Nuts for Copper Rod
Used for holding
the copper place in Anode Assembly for power supply in Caustic Soda
production
1999(114)ELT
347 (T) 2003 (54) RLT 801 (T) 2000 (116) ELT
528 (T) 2002 (147) ELT 570 (T)
– VINDHYA TELE LINKS – STEEL AUTHORITY OF – VINDHYA TELELINKS – D.S.M.SUGAR
MILLS
Copper Blocks
Attached to Cells used in the causticSOda manufactured-
Parts of Circuit Breaker
[SIC] (108) ELT 47 (T)
JAWAHAR MILLS
PVC CB 500, PVT 600 Thinner, Oroanic Chemicals, PVC ACS Organic
Chemicals
Used for painting
process pipe lines and equipments to avoid corrosion
2000 (117) ELT 769(T)
– BHARAT RADIATORS L
Cooling Water Tank
Used for cooling
water which is required for processing raw Materials
2000 (118) ELT 608 (T) 2001 (42) RLT 329
(T)
– SEARCH CHEM IND6T. –
VISHWA VISHAL ENGG
Electric
Insulation Chequered Rubber Matt in Black Colour
Used for avoiding
electrical shocks to keep the machines running continuously
2002 (52) RLT 602 (T) 2002 (51 ) RLT
735 (T)
– SPIC LTD. – SPIC LTD.
Level Gauge with
Pots and Accessories
Used for
measuring level of process fluids in tank
1997(96) ELT 404 (T) 2002 (51) RLT
1075 (T)
– MODERN
PETROFILS – CHEMPLAST INDIA LTI
PVDF Plain Gasket
Flanges
Part of
electrolyser used in the manufacture of caustic soda
2002 (51) RLT 951 (T) 1998(102) ELT 750 (T) 2002 (61) RLT
837 (T)
– CHEMPLAST INDIA
LTC – TITAWI SUGAR COMPLE – SHASUN
CHEMICALS
E/160/2000-Hum NRC LTD vs CCE MODVAT RS.3,85,276/- PENALTY RS.3,000/-Sr.No.29)PERIOD MAY ’95TO JULY’95,OCT’95,NOV’95,MARCH/’96,OCT’96 t J
CAPITAL GOODS/INPUTSVessels
USE COVEREIUsed for ueeff tor transporting caustic vapours and combustion air to the related
equipments
3 BY CASE LAWS –
(DIRECT/PERSUASIVE} 1<m (10J^ CLT 176(T)- SUMIL CYNCHM-fcTL 1998 (102)ELT 384 (T)- STAR PAPER MILLS 1998(98)ELT 674 (T)- DA8UR INDIA LTD.
Packing System
This is automatic
carton strapping and tapping machines in which rayon cakes are packed
2001 (46) RLT 301 (T) – ADVANI OVERLIKON 1999(112) ELT 50 (T) – ASSOCIATED CAPSUIES
Pumps
Used for
supplying caustic soda and sulphuric acid to steeping press
2000 (116) ELT 132 (T) – MODI TYRE 2000 (116)
ELT 461 (T) – PUNJAB CHEM ft PH.
Indion 225
Used for softening water which is used for preparation of viscose
used in manufacture of rayon
Eligible as inputs
Other Organic Chemicals
Used for painting
caustic soda process pipe lines to avoid, corrosion
– CAs InnutsY
2000 (117) ELT 769 (T) – BHARAT RADIATOR
E/354/2000-Mum NRC LTD VS CCE MODVAT RS.1.04.340/-SrNn PENALTY RS.3,000/-SK1>0″iU PERIOD MARCH ’95
CAPITAL GOODS/INPUTS
USE
COVERED BY CASE LAWS – (DIRECT/PERSUASIVE)
Air Conditioner
Used for maintaining the required
temperature and humidity for
1999(107) ELT 176 (T) – SUNIL SYNCHBM LD. 1999(107) ELT 66 (T) – PHARMASYNTH FORMULATI
manufacture
of Rayon Yarn.
1999(107) ELT 170 (T) – LUPIN LABORATORIES LT
Transporting
Vessels
Used for storing and circulating
the viscose for purification which are used for manufacture of Rayon yarn
1998(102)ELT
384 (T)- STAR PAPER MILLS LTD 1998 (98)ELT 674 (T)- DABUR INDIA LTD.
E/469/2QQO-Mum
NRC LTD vs CCE MODVAT RS. 39,669/- … PENALTY RS. 2,700/- Sr.
no. 31 PERIOD APRIL ’96 TO MAY ’96
CAPITAL GOODS/INPUTS
USE
COVERED BY CASE LAWS-(DIRECT/PERSUASIVE)
Corrugated Hose Pipe
Used for transfer of furnace oil
which is used as fuel for producing heat for heating heat transfer salt
2000 (116) ELT 554 (T) – GLOBAL
SUGAR LTC .
Safety Shower
Used as safety measure in case
of leakage of caustic soda flakes.
Bolts & Nuts
Used for fitting various
machines falling under Chapter Heading 8445/ 8479 used for manufacture of
final product Rayon Yarn, Nylon Yarn and various chemicals..
1999 (114) ELT 347 (T) –
VINDHYA TELELINKS 2000 (118) ELT 608 (T) – SEARCH CHEM IND.2000 (118) ELT 196
(T) – DHIR CEMENTS
Pressed Steel Radiators
Ueed of manufacture of Rayon Yarn, Nylon Yarn and various chemicals
NTB Extremulus Flat Belt
Used for driving the spindles
in saurer Allma machine where Nylon Yarn is wound.
2001 (133) ELT 90 (T) – OSWAL FATS 1 OIL 2002 (51) RLT 458 (T) – DALMIA CEMENTS 2000 (116) ELT
461 (T) – PUBJAB CHEM & P>
Water Shield Brand Textile Hose
Pipe
Used for supplying water
required in Rayon plant.
2001 (130) ELT 193 (T) –
PEPSICO INDIA
Plain Plate
These are parts of Hopper.
Boiler is essential for generation of steam which is used for manufacture of
various final products
2002 (150) ELT 650 (T) – UNITED
PHOSPHORC 2000 (119) ELT 611 (T) – GLOBAL SUGAR LT: 2003 (54) RLT 544 ‘”‘ (NET ISPAT LTD.
Fanner Belt
Used for running various motors
required for manufacture of fina products.
2001 (133!) ELT 90 (T) – OSWAL FATS & OILS 2002 (51) RLT 458 (T) – DALMIA CEMENTS 2000 (116) ELT
461 (T) – PUBJAB CHEM * PHARM
Unbrako Alien Key, Socket Head,
Caps Screw, Socket Set, Screw, Hex Socket Alien Screw
Used for fitting &
installing various machines required for manufacture of final products.
1997 (95) ELT 655 (T) – CENTURY
CEMENTS 2001 (130) ELT 903 (T) – ISPAT ALLOYS 2002 (51) RLT 49 (T) – MAX G.B.LTD.
Ultrasonic Cleaner
Ultrasonic Cleaner Is, ideally
suited for this precision work, which cleans the spinnerets thoroughly
without Inflicting any damage to the diameter of the orifices
2000 (115) ELT 169 (T) – SRF
LTD.
E/536/2000-Mum NRC
LTD VS CCE MODVAT RS.1,57,979/-sr.nO.34(SICK) PENALTY RS.4,400/- PERIOD JUNE & JULY. 96
CAPITAL GOODS/INPUTS
USE
COVERED BY CASE LAWS-(DIRECT/PERSUAST)
Unbrako Socket, Alien Cap Screw,
Set Screw, Grab Screw, Alien Key, Cap Screw, Socket Set Screw
Used in fitting &
Installing various machines required for manufacture of final products.
1997 (95) ELT 655 (T) – CENTURY CEMENTS 2001 (130) ELT 903 (T) –
ISPAT ALLOYS 2002 (51) RLT 49 (T) – MAX Q.B.LTD.
S.S.Rods and Welding Rods, M.S.
Welding Rods, Welding Electrodes
Rods are used for welding pipe lines,
machine parts, tanks etc. which are use for manufacture of Rayon Yarn, Nylon Yarn,
and Chemicals.
1999 (105) ELT 124 (T) – MEWAR
SUGAR MIL 1999 (111) ELT 608 (T) – K.L. STEEL LTD. 1999 (108) ELT 47 (T) – JAWAHAR M-ILLS
Chain
Used for regulating the speed
of pump through which viscose is pumped as per process requirement for
manufacture of Rayon Yarn.
1997 (23) RLT 306 (T) – MAIHAR CEMENT 2002 (53) HLT 294 (T) – MAWANA SUGAR 2002 (53) RLT 304 (T) – JINDAL STRIPS 1999 (105) ELT 124 (T) -.MEWAR
SUGAR
Capacitors
Used for commutation of silicon
control rectifier through which electrical supply 1e given to pot motors
where rayon yarn 1s wound.
1998 (98) ELT 156 (T) – VIVEK ALLOYS LT 2003 (156) ELT 918 (T) –
JINDAL STRIPS 2002 (51) RLT 951 (T) –
CHEMPLAST INDIA 2002 (49) RLT 813 (T)
– SAMCOR GLASS
Bolts
Used for fitting various
machines falling under Chapter Heading 8445/ 8479 used for manufacture of
finala < product Hayon Yarn, Nylon Yarn and various chemicals.
2000 (116) ELT 528 (T) –
VINDHYA TELELIN 2000 (118) ELT 608 (T) – SEARCH CHEM INC 1999 (114) ELT 347 (T)
– VINDHYA TELELIN 2000 (118) ELT 196 (T) – DHIR CEMENTS
Antimonial Lead Flanges and Plater
Used for carrying sulphuric acid to the spinning machine
for manufacture of Rayon Yarn.
2002 (51) RLT 1075 (T) – CHEMPLAST INDIA 1998 (102) ELT
488 (T) – J . K.PH ARMAGH EM
Fenner Belt
Used for running various motors required for manufacture
of final products.
2001 (133) ELT
90 (T) – OSWAL FATS & OILS 2002 (51) RLT 458 (T) – OALMIA CEMENTS 2000 (116) ELT 461 (T) – PUBJAB
CHEM i PHAF
Fuse Fitting & also with HRC Fuse, CFS with HRC F/L,
NBC * HBC Fuse Link, Conductors Do! Starter, also Fuse Board W/o Indicator
Fuse Link
Used for giving electrical supply to the Rayon spinning
machine falling under CSH 8445 where Rayon filament are formed.
1997 (95) ELT 301 (T) – KANORIA CHEMICALS 2002 (149) ELT
1291 (T) – STEEL STRIPS LTD. 2001 (137) ELT 1159 (T) – JINDAL STRIPS LTC 1998
(101) ELT 422 (T) – BHUSHAN STEELS
Push Button Station
Used for operating solenoid Valves in bleaching process.
These valves are used for supplying oil to bleaching machine falling under
CSH 8481 where cakes are bleached.
2002 (143) ELT 503 ( P*H ) – S. B. PACKAGING 2002 (51) ELT 837 (T) – SHASUN CHEMICALS
HSS Parallel Shank Jobber Series Twist Drills
Used for making holes to plates, shafts etc. which are
in the 1o nature of dril bite
Textile Hose Pipe
Used for supplying water required in Rayon plant.
2001 (130) ELT 193 (T) –
PEPSICO INDIA
Lubricant Boxes
These are fitted 1n plug valves. . These valves are
fitted on various pipe lines in manufacturing process
Aluminium Ext. Section
This is a part of Bleaching dryer. Dryer is used for
drying the Rayon cakes.
2002 (147) ELT 377 (T) –
GANGESHWAR LTD
is held to be admissible except on items Safety Shower and HSS Parallel Shank Jobber Series Twist Drills.
4. Since the credit is found to be eligible on almost the entire disputed items no penalty is found to be eligible to be imposed on the appellants since the issue of eligibility of capital goods credit was itself in doubt. Besides, a very small amount is been denied. Appeals allowed as per findings herein above i.e. penalty set aside and credit of all items except the items Safety Shower and HSS Parallel Shank Jobber Series Twist Drills.
(Pronounced in Court)