KISAN SAHAKARI CHINI MILLS LTD. Vs. CCE

JUDGEMENT

(1.) Heard both sides and perused records.

(2.) The dispute in the present case is about the eligibility to Modvat credit of plates, angles, channels etc. received by the appellant for use in their factory. The appellant took credit of duty paid on these items on the basis that the items were used as components and parts in the plant and machinery in the factory. A show cause notice was issued alleging that the items were being used as staging structure or used for repairing and maintenance of plant. The appellant submitted that credit is available on use as parts of plant and machinery. The adjudicating authority accepted that claim. That order was reversed by the Commissioner (Appeals) on appeal filed by the Revenue, noting that the items in question are known to be constructions/fabrication materials in common trade parlance. Based on that finding it was held that credit is not available. Reliance was also placed on the decision of this Tribunal in the case of DSM Sugar Mills Ltd. v. CCE, Kanpur, 2001 (135) ELT 654.

(3.) The contention of the appellant is that Commissioner's finding is erroneous inasmuch as eligibility for credit is required to be determined based on the specific use of the item and not on a general rule that plates, sheets etc are common construction material. Learned Counsel pointed out that even the show cause notice admitted that atleast part of the items were used for repair and maintenance of plant and machinery.