FATHIMA PANELS Vs. COMMR. OF C. EX., MANGALORE

JUDGEMENT

(1.) ISSUE relates to Modvat credit on capital goods i.e. radiant coil. It was the contention of the party that radiant coil is part and parcel of Thermal Fluid System and in view of the specific entry under Rule 57Q, Modvat credit as such cannot be denied. He said that the Department has denied Modvat credit on the ground that the heat generated out of the Thermal Fluid System has been extended to the neighbouring factory.

(2.) SHRI Munir Ahmed, appearing for the Revenue while justifying the action of the Department in denying the benefit referred to the decision of the Tribunal in the case of Sree S.G.K. Industries, as per Order No. F/12/2002, dtd. 7 -1 -2002 [2002 (147) E.L.T. 345 (Tribunal)], particularly he drew my attention to Para 6 of the Order, which is as under : -

(3.) I have carefully gone through the submissions made by both sides and perused the records. In the facts of this case, the main machinery Thermal Fluid System is installed in the appellants factory and radiant coil being a part and parcel of the Thermal Fluid System Modvat credit cannot be denied on the ground that the heat generated out of the Thermal Fluid System has been extended to the neighbouring factory. In the case referred to by the Departmental Representative, Modvat credit has been denied wherein it was held that capital goods i.e., D.G. Set has been utilized for distribution of power in respect of other unit than in the unit of installation. In the facts and circumstances particularly in view of the fact that radiant coil being a part and parcel of Thermal Fluid System and the heat generated therein is used in the appellants factory, there is no justification in denying the benefit as such. Accordingly, appeal is allowed.