CHEMPLAST SANMAR LTD. Vs. CCE

JUDGEMENT

(1.) THE assessee and the revenue are both aggrieved with the Order -in -Appeal No. 204 and 205/98 dated 24.12.1998 passed by CCE (Appeals) Trichy as the assessee is contesting the rejection of their claim for modvat credit in respect of certain items and the Revenue is contesting for grant of credit on certain items. The Commissioner's finding recorded in paras 3 8s 4 on these items on which he has granted and rejected the claim is produced as under:

(2.) I have gone through carefully the facts of the case and the submissions made by the appellants. The lower authority has denied the credit in respect of the following machinery/ components/ spares: Switch gear, Tubes of plastics, valves, spare drive ring, valve rings and diaphragm value, seals, seal spares, rubber tining. Analog input annunciator. Neoprene Hose connectors. Turbo charger, Impeller, adhesive, Cement, Agitator, Sensitive balance, Transformer oil, Titanium Thermowell, Filter element cartridge, PVC cable, spares for pumps, Xomox valve, energy conservation equipment, Glass Filled PTFE rod. Grid element and Bibby resilient couplings. PVC pipes, wire braided steam hose, Rubber hose assessory, Pipes, Tubular type marcooler fan, flanges, hacksaw blades, bolts and nuts, chlorine cylinder valves, Paceman styles, Equipment for HCL absorption, Fork lifts and spares., Iron rods, Computer parts, Hydrogen gas cylinders, light fittings, Oaskot and gaskol spares, push rod Indian galss tube rotametor. It would be seen from the above list that all the above items are falling within the definition of capital goods except the following: Seals and seal spares, paceman styles, Hacksaw blades, rubber lining, adhesives, Neopreme Hose connectors, Indion, Transformer oil, gasket and gasket spares These are all falling under the category of consumables and therefore not covered within the definition of capital goods under Rule 57Q Iron Rods and Cement : These are used for civil construction work of the building or in the construction of supports to hold the equipments at proper places and hence these are not capital goods for the purpose of Rule 57Q and its value is also not included in the assessable value of the final product. Hence these are not capital goods within the meaning of Rule 57Q. Light Fittings : These are electrical fittings used for lighting purpose and hence these are not capital goods under Rule 57Q. Tubular type marcooler fan with starter : These are used as spares in the air conditioning to keep the product at the required temperature. Since the goods are classifiable under Sub -heading 8414.00 and used in the air conditioning plant, credit of duty is not admissible under Rule 57Q. Bolts and Nuts : Bolts and Nuts do not fall within the category of capital goods. These are merely required for fixing machines etc., Chlorine cylinder value : These are used in cylinder. Cylinders are used for packing and hence these are not capital goods falling within the scope of Rule 57Q and therefore, the valves used in cylinders are also not capital goods. Indion: It is used to remove minerals present in the process water. It does not fall within the definition of capital goods. Spares for Pumps and Xomox Valves : The lower authority has denied the credit on the ground that they had taken the credit on the basis of invoices which were not in the name of the manufacturing unit. However the appellants contended that the orders for the capital goods were placed by their Head Office directly and the consignor mentioned the name of M/s. Chemplast, Plant -II instead of Chemplast. Plant -Ill. Since the order for capital goods was placed by their Head Office and the duty paid nature of the capital goods was not in doubt, the denial of the credit by the lower authority was not correct. Credit of duty of Rs. 3635/ - on the spares for pumps and Xomox values is therefore, admissible to them.

(3.) IN view of the above, the appeals are party allowed and the orders passed by the lower authority modified to the above extent.