FIMAKEM INDIA LTD. Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) After hearing both sides it is found that the issue involved in this appeal is the admissibility of Modvat credit of Rs. 2,12,873/ - on certain chemicals which are used as coating material for coating insides of storage tanks in the appellant's factory. The claim was made under Rule 57Q and a declaration under Rule 57F was filed by the assessee.

(2.) The original authority found that the item in question are not components, spares and accessories of the goods specified under Serial Nos. 1 to 4 of the Table given under Rule 57Q and therefore rejected the submissions of the appellants that the said goods could be considered to be accessories, if not parts of storage tanks. The function of the material in question is admitted to be so integrally connected with the tanks/vessels that it is manifestly necessary to use them in such vessels/tanks. The original authority finally concluded by the following observation and denied the credit for the period July to August, 98.

(3.) The Commissioner (Appeals) came to the following conclusion to reject the credit: