C.C.E. CHANDIGARH Vs. ARIHANT COTSYN LTD.

JUDGEMENT

(1.) The respondents are the manufacturers of Yarn falling under Chapters 52 and 55 of the Central Excise Tariff Act, 1985. They are availing modvat credit on the capital goods under Rule 57 -Q of Central Excise Rules, 1944. The Asst. Commissioner of Central Excise, Jalandhar Division vide his Order dt. 6.2.98 allowed them the modvat credit amounting to Rs. 5,500/ - availed by them on the Electric Control Panel.

(2.) The Revenue filed appeal against the above order of the Asst. Commissioner, but the Commissioner (Appeals), Chandigarh rejected same with the observation that the Switch Board/Panel is a part of Control System of main machinery, without which the machinery cannot function. Thus it is an integral part of plant and machinery. The lower appellate authority in arriving at such findings relied on the decision in the case of Associated Cement Co. vs. CCE reported in 1998 (97) ELT 379 (CEGAT).

(3.) This is the second stage appeal filed by the Revenue. I have heard Shri M.D. Singh, SDR for the appellants. The respondents are not represented and vide their letter dt. 8.3.2001, they have requested the matter to be decided on the basis of the material on record.