WINSOME SPINNERS Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THE appellants, M/s. Winsome Spinners, have filed an appeal against the Order of the Commissioner (Appeals) dated 13 -6 -2000 which denied Modvat credit in respect of two items, namely, (i) fibre glass insulation which maintained the desired humidity/temperature conditions while spinning; and (ii) storage tank placed for storage of diesel oil required for running the diesel generating set being essential item for running the factory. The learned Commissioner (Appeals) concluded that these goods do not bring about any change in any substance for manufacture of the final product and they cannot be considered as integral part of plant, machinery etc. He, therefore, denied the credit.

(2.) IN addition to that, the appellants had grievance against the decision of the Deputy Commissioner vide his Order dated 9 -7 -1996 in which it was held that the Modvat credit of Rs. 15,000/ - availed by the appellants was done so without duplicate copy of the invoice. Hence credit was denied to them.

(3.) THE learned Counsel for the appellants states that modvat concept is benevolent concept and the main focus is to avoid cascading of taxes at every point of manufacture. As regards the applicability of modvat in respect of the fibre glass insulation used by them, he cites the case of CCE, Chandiqarh -I v. Winsome Spinners Ltd. . In this case, this Tribunal has already accepted the plea of the appellants and allowed Modvat credit in respect of fibre glass insulation. As regards the applicability of Modvat credit in respect of diesel storage tanks, he relies upon the following two decisions of this Tribunal: