COMMISSIONER OF CENTRAL EXCISE Vs. KASTURI SUGAR MILLS

JUDGEMENT

(1.) In this appeal, the Revenue has challenged the impugned order of the Commissioner (Appeals) vide which he has allowed the Modvat credit of the disputed amount to the respondents on MS structures and the other goods detailed in the show cause notice.

(2.) The respondents took Modvat credit on certain capital goods which were received by them for setting up the Plant for the manufacture of VP sugar. The goods included sugar mill machinery, boilers and their components, structures for boilers, pipes, tubes, etc. They were, however, served with the show cause notice for having wrongly claimed Modvat credit on the capital goods. The total amount of credit availed by them was of Rs. 1,21,03,371.57. The adjudicating authority allowed the Modvat credit of Rs. 57,50,671.37 and disallowed the credit of the remaining amount of Rs. 63,52,700.20. The Modvat credit disallowed to them was on the steel structures and the goods covered by the invoices detailed at Sl. Nos. 2 and 3 of the Annexure A appended to the show cause notice. The Commissioner (Appeals) has allowed the Modvat credit of the disputed amount by reversing the order -in -original in respect of both these items/goods.

(3.) The learned JDR has reiterated the correctness of the order -in -original and contended that no Modvat credit could be allowed to the respondents on steel structures as well as on the goods covered by invoices mentioned at Sl. Nos. 2 and 3 of the Annexure A to the show cause notice. On the other hand, the learned Counsel has reiterated the correctness of the impugned order of the Commissioner (Appeals).