Customs, Excise and Gold Tribunal - Mumbai
Su-Vi Pharmaceuticals And Chemicals ... vs Commissioner Of Central Excise on 13 September, 2004
ORDER T. Anjaneyulu, Member (J)
l. Heard both sides.
2. The issue involved in this appeal is about availability of modvat credit on capital goods.
3. The appellant unit is a manufacturer of various Organic Chemicals, failing under Ch 29 of the Central Excise Tariff Act, 1985. The assessee has opted for modvat facility under self-removal procedure as applicable to them. Assessee has filed the declaration under Rule 57T (10) of Central Excise Rules for availability of modvat credit and capital goods at serial No. 12 viz "Bourdon Sensing Pressure Gauge 34 nos" and serial No. 13 viz, Reciprocating type Refrigeration equipment". Show cause notice was issued informing that the assessee was not entitled for modvat credit as the goods do not fall within the definition of capital goods.
4. After due enquiry, the Assistant Commissioner, Central Excise, Customs, Solapur passed an order disallowing modvat credit and confirming the demand of Rs. 48073.00 under Section 11A of the Central Excise Act, 1944 read with Rule 57U of Central Excise Rule. An amount of Rs. 5,000/- was also imposed as penalty under Rule 57Q of Central Excise Rules.
5. On filing the appeal by the assessee, the Commissioner (Appeals), Customs & Excise, Pune allowed modvat credit of Rs. 3073/- on equipment "Bourden Sensing Pressure Guage" and waived the penalty of Rs. 5000/-imposed by the Assistant Commissioner. Hence the appeal before this Tribunal in not allowing the modvat credit on "reciprocating type refrigeration".
6. Commissioner (Appeal) has observed in the impugned order that reciprocating type refrigeration equipment is classified under chapter 8418.10 is found excluded from the table Under Rule 57Q of Central Excise Rules, 1944.
7. Ld. Counsellor for the appellant relied upon the decision reported in 2000 (124)E.L.T.541 (Tribunal); J.C.T. Electronics v. Commissioner of Central Excise, Chandigarh. It is observed that the modvat credit on capital goods available for (1) material cooling equipment (air conditioners equipment, machine equipment, centrifugal compressors, impellers for chilling machine, chilled water coil, cooling tower, PVC fill sheet for cooling tower, plate heat exchanger); (2) electric equipment and apparatus (wires and cables, control panel, voltage stabilisers) ; (3) measuring instruments and equipment; (4) material handling equipment (Forklift and V.V. belts); (5) parts of eligible plant and machinery.
8. He also relied upon certificate issued by the Chartered Engineer. This shows that he has inspected the installed Chilling plant and found that the same is used in the process to Chill the water and the said chilled water is circulated through the condenser to condense the MIBK vapour.
9. However, it is noted that the certificate and Boards Circular dated 12/12/96 were not placed before the Commissioner (Appeals).
Therefore, it is felt proper to remand the matter for fresh identification in the light of the above referred documents, after hearing both sides.
The appeal is allowed in remand in above terms.
(Pronounced in Court)