INDIA GLYCOLS LTD. Vs. CCE

JUDGEMENT

(1.) THESE appeals are directed against Order -in -Appeal dated 30.4.2004. Appeal No. E/3504/04 is filed by the assessee, while appeal No. E/4096/04 is filed by the department.

(2.) THE assessee has filed appeal against denial of Modvat Credit on the following items:

(3.) HEARD both sides and perused the record. Let me first take up the assessee appeal for disposal. The assessee is challenging the denial of Modvat Credit on above items. From the perusal of the record I find that the Modvat Credit on Inerts and Springs, Ceramic Fibre, Enklon N.68, and Cable Glands are permissible to the appellants/assessee. These items are used by the appellant in their factory in relation to the manufacture of their final product. I find from the record that without Inerts and Springs, catalysts which are added by the appellants during the manufacture, would not be possible. Ceramic Fibre is used for covering of the pipeline, which transfers the processed/unprocessed material from one reaction vessel to another reaction vessel. The Ceramic Fibre is used to maintain heat in the pipeline while material is being transferred in the pipeline. Enklon No. 68 is oil which is used as lubricating oil used in pumps. Cable Glands are parts of electrical installation which joins the cables carrying electricity. It is settled law that any item which is used in the factory in or in relation to the manufacture of final product Modvat credit is not deniable. From the above it can be seen that the inputs/material are used by the appellant's factory and these items are required by them for manufacturing of final product.