UDAIPUR POLYSACKS LTD Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) APPELLANTS have filed written submissions and have requested for decision of the appeals on merits on the material available on the record as well as the written submission filed by them on 25 -10 -1999.

(2.) THE appeal is against the order of the Commissioner (Appeals) New Delhi dated 1 -6 -1998 by which Modvat credit to the tune of Rs. 89,384/ -was disallowed on three items, namely, electric wires and cables, doshion exchanger and water softening plant under Rule 57Q. Commissioner (Appeals) had denied credit on electric wires and cables on the basis of two decisions of the Tribunal, namely J.K. Pharmachem Ltd. v. C.C.E. [1997 (21) RLT 868] and Southern Iron and Steels Co. Ltd. v. C.C.E., [1998 (74) ECR 116]. As regards doshion exchanger and water softening plant credit was denied on the ground that both the items are required for treatment of water, which is used for softening of hard water. The Assistant Commissioner has held that these items were not used for producing or processing of goods for bringing about any change in any substance in the manufacture of final product. Commissioner (Appeals) has denied Modvat credit on the said items following the Tribunal in decision [in] Commissioner v. Shanmugaraja Spg. Mills [1997 (89) E.L.T. 84].

(3.) IN the written submissions appellants have submitted that as far as wires and cables are concerned their claim for Modvat credit on the said items would be admissible in view of the recent Larger Bench decision of the Tribunal in Jawahar Mills Ltd. v. C.C.E., reported in 1999 (108) E.L.T. 47. As regards the other two items namely, Doshion Exchanger and water softening plant, reliance has been placed on 5 decisions of the Tribunal namely :