JUBILANT ORGANOSYS LTD. Vs. CCE

JUDGEMENT

(1.) HEARD both sides. The appellant filed this appeal against the impugned order whereby credit was denied in respect of Welding Electrodes, Shapes and Sections, MS Bars, HR Coils and Steel plates, etc.

(2.) I find that the issue regarding credit in respect of Welding Electrodes is decided by the Tribunal in favour of Revenue. Larger Bench in the case of Triveni Engg v. CC reported in 2003 (186) ELT 158 and Jaypee Rewa Plant v. CCE, Raipur held that credit in respect of Welding electrodes as capital goods as well as inputs is not available. In view of the above position, I find no infirmity in the impugned order whereby credit in respect of Welding Electrodes is denied.

(3.) IN respect of credit on shapes and Sections etc, the contention of appellant is that same is used for fabrication/expansion of treatment plant and Methane Reactor which are used in the manufacture of final product. The contention is that during the relevant period, as per the provisions of Central Excise Rules, credit is available in respect of the inputs used in the manufacture of capital goods, even such capital goods are for the time being, exempted from whole of the duty or chargeable to nil rate of duty subject to the condition that the capital goods are used in the factory of production in the manufacture of final product. The contention is that as the use of goods is not dispute, the credit was denied only on the ground that the goods in question are raw material of the capital goods. The contention is that as the appellants are entitled for credit in respect of the inputs used in the manufacture of capital goods, which are used in the factory, therefore the credit was wrongly denied. The contention of revenue is that per -se, these items are not covered in the definition of capital goods and the capital goods manufactured out of these goods are non -excisable goods as the same are immovable property. Therefore, the credit was rightly denied.