COMMISSIONER OF CENTRAL EXCISE Vs. CHEMPLAST SANMAR LTD.

JUDGEMENT

(1.) THE respondent/assessee are holding Central Excise Registration Certificate No. 3/92 and are engaged in the manufacture of Chloromethane Product, TCE Product, STC etc., falling under Chapter 29 of the Central Excise Tariff Act, 1985. On verification of RT 12 submitted by the assessee for the months of October 1996 to December 1996, it was noticed that they have taken credit of duty in RG 23C Part II on goods such as pumps, iron and steel, motor, cables, electrical appliances etc. According to the Jurisdictional Superintendent, the goods referred above do not either bring about any change in the material used in the manufacture of final product or are used for processing of excisable finished product. As such the credit taken on the goods as "capital goods" is in contravention of the provisions of Rule 57Q and hence are liable to be expunged under the relevant provisions.

(2.) CONSEQUENTLY , a show cause notice was issued on 10.04.1997. Reply was submitted on 22.4.1997 along with Explanation that the capital goods are used in the manufacture of final products.

(3.) THIS includes MS Tanks which is the subject matter of the present appeal.