NITIN SPINNERS LIMITED Vs. CESTAT

JUDGEMENT

(1.) THIS appeal is directed against the order of Customs, Excise and service Tax Appellate Tribunal, New Delhi dtd. 30 -10 -2003. The appellant is 100% export oriented unit engaged in the manufacture of cotton yarn and polyester yarn falling under Chapter 52 and 55 respectively of the schedule -I of the Central Excise Tariff Act, 1985. It has brought in the factory aluminum sheets and fiber glass for the purpose of its use and has actually been used in laying false ceiling and humidification plant.

(2.) ACCORDING to the assessee, it has used fiber glass and aluminum sheets for providing false ceiling in humidification plant to obtain better efficiency of the plant. He, therefore, procured the aforesaid goods without payment of Duty relying on the notification No. 1/95 C.E., dated 4 -1 -1995 by issuing CT -3 certificate.

(3.) THE assessee replied by stating that item in question are part of humidification system and covered under the category of capita! goods and hence exemption from Duty for user of aforesaid items for humidification system cannot be denied merely because there is no specific mention of fiber glass and aluminum sheets in the Notification (Annex. 1).