Custom, Excise & Service Tax Tribunal
Commissioner Of Central Excise vs Sterlite Industries (I) Ltd on 26 May, 2009
IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL
SOUTH ZONAL BENCH AT CHENNAI
Appeal No.E/584/01 & E/CO/177/03
E/964/01 & E/CO/7/04
[Arising out of Order-in-Appeal No.14/2001 (MDU) (GVN) dated 26.2.2001 & OIA No.53/2001 (MDU) (GVN) dt. 21.6.01 passed by the Commissioner of Central Excise, (Appeals), Tiruchirapalli]
For approval and signature:
Honble Ms.JYOTI BALASUNDARAM, Vice-President
Honble Mr. P.KARTHIKEYAN, Member (Technical)
1. Whether Press Reporters may be allowed to see the Order for publication as per Rule 27 of the CESTAT (Procedure) Rules, 1982? :
2. Whether it should be released under Rule 27 of the
CESTAT (Procedure) Rules, 1982 for publication in any authoritative report or not? :
3. Whether the Members wish to see the fair copy of
the Order? :
4. Whether Order is to be circulated to the Departmental
Authorities? :
Commissioner of Central Excise,
Madurai
Appellant/s
Versus
Sterlite Industries (I) Ltd.
Respondent/s
Appearance :
Shri V.V.Hariharan, JCDR Shri Muthuvenkatraman, Advocate Shri M.N.Bharathi, Advocate For the Appellant/s For the Respondent/s CORAM:
Honble Ms.Jyoti Balasundaram, Vice-President Honble Mr. P. Karthikeyan, Member (Technical) Date of hearing : 26.5.2009 Date of decision : 26.5.2009 Final Order No.____________ Per Jyoti Balasundaram The issue in dispute in these appeals relates to admissibility of the following goods to capital goods credit in the factory of the respondents who are manufacturers of copper anode falling under Heading 74 of the First Schedule to the Central Excise Tariff Act, 1985 :-
1) PLC Hardware
2) CCTV System
3) Radio Remote Control
4) Memory Modules
5) Camera Mount & Monitor Mount and
6) Furosplit FN syrup and Furosplit FN activator
2. We have heard both sides. We find that PLC Hardware, CCTV System and Radio Remote Control are instrumentation materials used in the control system of the plant for monitoring the manufacturing activity; that all the high speed rotating systems are controlled by the PLC Hardware. CCTV system is a remote eye which controls the fuel process. The Radio Remote Control is also used to monitor the manufacturing activity. Memory Module accessories are instrumentation spares used in direct control system. All these items are, therefore, in the nature of components or accessories of the smelter plant which falls under Heading 84.10 which is an eligible (specified) heading under Rule 57Q of the Central Excise Rules. We, therefore, uphold the extension of capital goods credit on these four items.
3. As regards Camera Mount and Monitor Mount, they are used to monitor the whole smelter which is monitored by advance control system called distribution control system. Smelting operations such as lance operation, tapping, pellatisation etc. are monitored by operators through CCTVs. Camera/Monitor Mount is part of the CCTV. Therefore, they are to be treated as accessories of the smelter plant and hence eligible to credit.
4. As regards Furosplit FN syrup and Furosplit FN activator, these are pasting materials used in the gas cleaning section of the sulphuric acid plant, used to paste the acid resistance bricks in the gas cleaning area of the acid plants. They are in the nature of components to the sulphuric acid plants machines like effluent separator gas transferring equipment. Therefore, credit is rightly held to be admissible on these items also.
5. In the result, we uphold the impugned orders extending the benefit of credit on the items in dispute in these two appeals and reject the appeals.
6. The cross-objections are only in the nature of reply to the Revenues appeals and are therefore dismissed.
(Dictated and pronounced in open court)
(P.KARTHIKEYAN) (JYOTI BALASUNDARAM)
MEMBER (T) VICE-PRESIDENT
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