Custom, Excise & Service Tax Tribunal
M/S.Ponni Sugars (Erode) Ltd vs Commissioner Of Central Excise, Salem on 22 October, 2009
IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL
SOUTH ZONAL BENCH AT CHENNAI
Appeal No.E/459/2003
[Arising out of Order-in-Appeal No.21/2003-CE dated 11.04.2003 passed by the Commissioner of Central Excise (Appeals), Salem]
M/s.Ponni Sugars (Erode) Ltd.
Appellants
Versus
Commissioner of Central Excise, Salem
Respondent
Appearance:
Shri M.N. Bharathi, Adv. Ms. Indira Sisupal, JDR For the Appellants For the Respondent CORAM:
Honble Dr. Chittaranjan Satapathy, Technical Member Date of hearing : 22.10.2009 Date of decision : 22.10.2009 Final Order No.____________ Heard both sides. In this case, steel plates and steel angles have been used for manufacture of storage tanks, which is used in the premises of the appellants factory for storage of molasses. Shri M.N. Bharathi, learned advocate appearing for the appellants states that molasses are intermediate goods, which are further used within the factory for manufacture of sugar. He further states that storage tanks are capital goods, which is very much essential for storing intermediate goods and hence is integral to the manufacturing process. He also cites the decisions of the Tribunal in the cases of Lloyds Metals & Engineers Ltd. Vs Commissioner of Central Excise, Nagpur [2002 (15) E.L.T.638 (Tri.-Mumbai)] and Himadri Chemicals & Industries Ltd. Vs Commissioner of Central Excise, Kolkata-IV [2007 (219) E.L.T.568 (Tri.-Kolkata)] and states that in both these cases credit of duty paid on steel materials used in the manufacture of storage tanks have been allowed.
2. Heard the learned DR Ms. Indira Sisupal, who supports the impugned order.
3. In view of the fact that storage tank is integral to the process of manufacture of sugar, as the same is used for storing molasses at the intermediate stage and also in view of the fact that the cited decisions of the Tribunal have allowed credit of duty paid on steel materials used for manufacture of storage tanks, the impugned order is set aside and the appeal is allowed with consequential relief to the appellants. (Dictated and pronounced in open court) (DR. CHITTARANJAN SATAPATHY) TECHNICAL MEMBER ksr 22-10-2009 ??
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