CCE Vs. SPIC LTD.

JUDGEMENT

(1.) THE revenue is aggrieved with the order in Appeal No. 86/2000 dt. 25.8.2000 wherein the Commissioner (Appeals) has held that the assessee is eligible for Modvat credit on the inputs viz. Macscal/Macperz. These items are water treatment chemicals used for treating cooling water heat circulated through pipes and the equipment "heat exchange for cooling purposes". This treated cooling water heats the pipes and equipments free from any damage, thereby ensuring proper functioning of the equipment and increasing the life span of the equipment. It was held that in case the water is not treated with these water itreatment chemicals, it would not only lead to rapid corrosion of the equipment but also expedite mal -function in the process of by way of mixing with the process fluids like caustic soda, chlorine etc. resulting in deviation of plant parameters, continuous contamination of intermediate products and production of sub standard goods. The Commissioner has relied on his earlier orders and allowed the assessees' claim. Revenue is agreed with this order. Hence this appeal.

(2.) HEARD Ld. SDR. None appeared for the Respondents despite notice. The earlier order relied by the Commissioner has been produced before this Bench and the Revenue Appeals was dismissed vide final order No. 179/2002 dt. 25.2.2002. While relying on the decisions cited in the final, they are noted the following citations.

(3.) AS the Tribunal has already upheld the Commissioner (Appeals)' order on similar issue, therefore, respectfully following the ratio of the Tribunal's decision noted (supra) the Revenue appeal is rejected.