GULJAG INDUSTRIES LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) APPELLANTS filed this appeal against the order -in -appeal passed by the Commissioner (Appeals), whereby the Modvat Credit of Rs. 7,71,311.00 was [not] allowed on the ground that the capital goods, manufactured by the appellants, are not excisable as these are permanently attached to the earth.

(2.) HEARD both sides.

(3.) THE contention of the appellants is that the appellants manufactured sulphur melter with coils in their factory and, thereafter, manufactured melter was installed in the tank. Appellants paid duty on sulphur melter with coils and availed the benefit of credit as capital goods. The credit was denied only on the ground that sulphur melter is permanently attached to the earth, therefore, is not excisable. The contention of the appellants is also that the appellants availed the benefit of credit in respect of the inputs used in the manufacture of melter and revenue is disputing this credit. The contention of the appellants is that the revenue authorities wrongly came to the conclusion that the melter is immovable property whereas the appellants produced evidence that the melter was first manufactured and thereafter fixed in the tank. In these circumstances, they are entitled for the benefit of credit in respect of the duty paid on melter.