GOYAL MG GASES P. LTD. Vs. CCE

JUDGEMENT

(1.) IN these two appeals, the appellants have challenged the order of the Commissioner (Appeals) denying them the Modvat credit on Refrigeration Compressor. Zero Grade Nitrogen Gas and Calibration Gas and Chlorofloro Carbon Refrigerant gas.

(2.) THE appellants are engaged in manufacture of Compressed Oxygen, Liquid Oxygen and Nitrogen Gas falling under Chapter 28 of Central Excise Tariff.

(3.) IT is pleaded that that the denial of Credit on the Compressor is contrary to the provisions of Rule as at the relevant time, compressor of a kind used in refrigeration and air -conditioning appliances and machinery falling under sub -heading No. 84.14 were only excluded and other compressors were eligible for Modvat credit. They were using the compressors in the air chilling plant. They were not using it in a refrigerating and air -conditioning appliances and machinery. Their Air Separation Unit was falling under Heading 84.19 of the Schedule to the Central Excise Act. Since mis item is not excluded from the definition of capital goods, they were eligible for Modvat credit on compressor. The Compressor was being used by them as a spare part in the air chilling plant and irrespective of Heading where it falls, it was eligible for Modvat credit under Clause (d) of the definition of capital goods as given under Explanation below Rule 57Q(1) at the relevant time.