ORDER
S.S. Kang, Vice Present
1. Heard both the sides. The appellant filed this appeal against the order-in-appeal whereby the benefit of modvat credit in respect of following items is disallowed:
1. High temperature colour close circuit TV
2. Mechanical interlock
3. Assembled Expansion, Joint
2. The contention of the appellant is that High temperature colour close circuit TV is used with kiln as an accessory. This close circuit TV is used for monitoring burning condition in kiln which produces clinker and clinker condition. It is classifiable under chapter Heading 8474.10 of the tariff and as per the definition of capital goods under 57Q at the relevant lime, the, components, spares, parts and accessories are covered in the specified goods. The contention or the appellant is that High temperature colour close circuit TV is used as accessory of kiln. Therefore, they are entitled for the benefit of credit.
3. In respect of mechanical interlock, the contention is that, revenue is not disputing that it is a part of pollution control equipment which is essential for running of the cement plant and thus mechanical interlock is used inside the pollution control plant to separate dust particles from fuel gas. Being part of pollution control equipment, the mechanical interlock is entitled for the benefit as capital goods.
4. In respect of assembled expansion joints, the contention is that these are used as parts of ducts in various places in the plant. The contention is that the ducts are used for carrying steam to various parts of the plant. Therefore, being part of the ducts, these are entitled for the benefit of capital goods.
5. The contention of the revenue is that High temperature colour close circuit TV is classifiable under Heading 8528 of the tariff and the same is not specified under Rule 57Q. The same contention is in respect of other items.
6. The revenue is not disputing the use of all items in question in the factory. Rule 57Q provides that specified goods used in the factory are entitled for benefit as capital goods. Rule further provides that accessories, components, parts and all specified goods are also covered under the definition of ‘capital goods’. High temperature colour close circuit TV is used as an accessory to kiln, mechanical interlock is used as part of pollution control equipment, and assembled expansion joint are used as parts of ducts. Therefore, being part and accessory and component of the specified goods, the appellants are entitled for the benefit of modvat credit in respect of all these goods. The impugned order is set aside and the appeal is allowed.
(Dictated and pronounced in the open Court)