TITAN INDUSTRIES LTD. Vs. CCE

JUDGEMENT

(1.) Shri R. Raghavan, ld. Counsel, appearing for the appellants, at the outset submitted that entire duty of Rs. 96,0950.00 confirmed in this case has already been paid by the appellants vide PLA Entry SI. No. 388 dated 25.3.1998. He has, further, submitted that the issue is no longer res integra as the issue has been decided in their favour by this Bench. In support of his submission, he has invited any attention to the judgment rendered by this bench in their own case vide final order No. 549/2002 dated 3.5.2002 in Appeal E/246/1998 reported in 2002 (51) RLT 573 (CEGAT -Che.) : wherein this Bench has allowed the modvat credit on parts of air -conditioners which have been used in or in relation to the manufacture of the final products, namely, watches, Ld. Counsel has also invited our attention to the judgment rendered by this Bench in their own case vide order No. 1443/97 dated 27.3.1997 reported in 1997 (96) ELT 398 (T) : 1997 (73) ECR 230 (T).

(2.) Heard Ld. DR Shri A. Jayachandran who submits that their period involved in this case is 9.7.1996 by which parts of air -conditioners were found eligible and are also covered by the judgment rendered by this Bench in appellant's own case. He, therefore, has fairly conceded that the matter is covered in their favour both as per law and the decision rendered by this Bench.

(3.) I have carefully considered the submissions made by both sides and I am of the considered opinion that parts of air -conditioners used in the air -conditioners which are used for controlling the temperature in the manufacture of wrist watches are eligible for availing modvat credit as per the existing provisions at the relevant point of time and as per the decision rendered by this Bench as well as the different co -ordinate benches of the Tribunal. Respectfully following the ratio of the order of this Bench in their own case reported in 1997 (96) ELT 393 (T)(supra) and 2002 (51 RLT 573 (CEGAT Chennai) : as well as the larger bench judgment rendered in Jawahar Mills Ltd. v. CCE Coimbatore reported in 1999 (32) RLT 379 (CEGAT -LB) : which has been confirmed by the Apex Court reported in 2001 (132) ELT 3 (SC), I hold that modvat credit is eligible. Therefore, the appeal filed by the assessee is allowed by setting aside the impugned order Ordered accordingly.