CROMPTON GREAVES LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) Appellants manufacture Transformers where 'Transformer Oil' is used as an insulating agent and claim the oil to be an input under Rule 57A.

(2.) The lower authority found that oil is being dispatched separately in sealed drums, is not eligible for credit and not only the value of oil should be included but also the oil should be contained in the transformer at the time of removal, to be eligible for credit. Therefore they denied the credit.

(3.) It is found, there is no finding on that eventually on installation of the transformer the oil is so used in the transformer. Transformers of certain sizes have to be removed in knocked down conditions. Therefore sending the oil in sealed drums separately cannot be a cause for disentitlement. However, it has to be established that the quantity of oil so removed is the quantity, required for using in that transformer size at site. For this purpose, the matter is required to be remitted back for re -determining the eligibility once again following para 4 of the Tribunal order in the case of Crompton and Greaves Ltd. 2002 (52) RLT 1036. This appeal is allowed as remand to the original authority.