Customs, Excise and Gold Tribunal - Bangalore
Travancore Cochin Chemicals Ltd., ... vs The Commissioner Of Central Excise, ... on 12 December, 2001
JUDGMENT
G.A. Brahma Deva
1. Whether 'MS plates' and 'Energy Saving Devices' are eligible items to avail modvat credit as capital goods in terms of Rule 57Q is an issue to be considered in this appeal.
2. As regards MS Plates, it is submitted by the counsel that MS Plates used for fabrication of storage tanks. Storage tanks are eligible under Rule 57Q. He said once the storage tanks is considered as capital goods, since this has been used in fabrication of storage tanks, the department was not justified in denying the credit. In support of his contention he referred to the decision in the case of J.K. Cement Works, reported in 2000 (116) ELT 52 wherein it was held that "Plain plates used for repairing the worn-out/broken parts of the kiln shell eligible to modvat as kiln is part of the plant in the factory".
3. Smt. Radha Arun, appearing for Revenue submitted that H.R.SS. plats are not eligible for credit as it was held by the Tribunal in the case of Bhansali Engg. Polymers Ltd, reported in 1999 (105) 213 (T).
4. On going though the facts and submissions made by both sides, concurring with the plea taken by the party, I hold that M.S. Plates are eligible to avail credit as capital goods in terms of 57Q. Accordingly appellants succeed on this issue.
5. With reference to Energy Saving Device, Smt. Radha Arun pointed out that there is no clear finding by the authorities below whether this has been used in saving energy of the lighting system or it was exclusively used in the factory. She submitted that factual position required to be examined. In the absence of finding, I am also of the view that eligibility of modvat credit with reference to energy device is required to be examined by the adjudicating authority. He is directed to examine the factual position and to pass an appropriate order in accordance with law on providing an opportunity to the party. The party may substantiate his claim during the adjudication proceedings. Thus this appeal is allowed by way of remand with reference to Energy Saving Device.
Ordered accordingly.
(Pronounced and dictated in the open court.)