Customs, Excise and Gold Tribunal - Mumbai
Industrial Oxygen Co. Ltd. vs Commissioner Of Customs And Central ... on 24 August, 2001
ORDER
1. The contest in this appeal is of denial of modvat credit on: (1) storage tanks; and (2) L.T. distribution panel.
2. The assessee manufacture oxygen generated at the pressure of 30 kgs/cm. For the sake of marketability it had to be reduced to 12 kgs/cm. This purpose was achieved by storage in the tank. The Commissioner (Appeals) held that the storage was post manufacture and did not get into production or processing of the goods.
3. The situation is covered in the case of Tribunal judgment in the case of Dabur India Ltd. Vs. CCE 1997 (98) ELT 674S. In that case such tanks were used for cooling chavanaprash before they being put into marketable condition. Since marketability is pre-condition to imposition of duty the ratio of the judgment would apply to the present case.
4. As regards the LT distribution panel the admissibility has been upheld in a number of cases including the one in the case of Bell Granito Ceramica Ltd. Vs. CCE 1999 (105) ELT 487.
5. Appeal thus succeeds and is allowed with consequential relief, if any.