CCE Vs. SURYA PHARMACEUTICALS LTD.

JUDGEMENT

(1.) THE revenue is in appeal against the order -in -appeal dated 14.06.2004, which allowed the Modvat credit.

(2.) THE relevant facts that arise for consideration are that the respondent availed the Modvat credit of the duty paid on the parts used in the manufacture of two chilling plants in their factory during the period July 1996 to March 2001. The lower authorities issued a show cause notice alleging that the credit is inadmissible as per Rule 57Q as was in existence during the relevant period. Respondent contested the show cause notice on the ground that the said chilling plant is a necessity for the manufacturing of their final products i.e. bulk drugs and without the chilling plant there would be no final products. Adjudicating authority confirmed the demand on the ground that the parts of chilling plant were classified under chapter heading No. 84.15 and hence excluded by the rule itself. On an appeal the commissioner (Appeals) allowed the appeal.

(3.) LEARNED DR submits that the credit availed by the respondent is not in order in as much that the parts of chilling plant falls under chapter heading No. 84.15, which are specifically excluded from the definition of capital goods, howsoever they may be required by the respondent for the manufacture of their final products.