Customs, Excise and Gold Tribunal - Delhi
C.C.E., Indore vs M/S. Vikram Super Cement on 3 May, 2001
Equivalent citations: 2001(138)ELT323(TRI-DEL)
ORDER K.K. Bhatia, Member (T)
1. These two appeals are filed by the Revenue against a common order dt. 23.2.99 passed by Commissioner (Appeals), Bhopal. The brief facts are that the respondents manufacture 'Cement' falling under Chapter Sub-heading No. 2502.29 of Central Excise Tariff Act, 1985. They were inter alia availing the modvat credit on 'inputs' under Rule 57-A and as 'capital goods' under Rule 57-Q of the Central Excise Rules, 1944. They were denied the modvat credit totally amounting to Rs. 82,476/- on the following items claimed by them as capital goods under Rule 57-Q.
(a) Fibre glass shutter for HT Isolator - Sub-heading 8538.00,
(b) Gypon Terminal: Sub-heading: 8538.00
(c)Cerwool Ceramics Fibre Blanket- Sub-heading: 6807.00.
(d) Grinding Elements and Grinding Media - Sub-heading: 7325.20.
2. Last item at Sl. 4 above is also claimed alternatively as 'input' under Rule 57-A.
3. The party filed an appeal against the order of the Asst. Commissioner and the Commissioner (Appeals) vide Order dt. 23.2.99 allowed the appeal of the party setting aside the order passed by the original Authority.
4. This is the Revenue appeal against the above order of Commissioner (Appeals). I have heard Shri. J. Singh, JDR for the appellants. The respondents are not present despite the notice. I have considered the submissions made before me. It is observed that in the manufacturing process, the first two items viz., Fibre Glass Shutter and Gypon Terminal are stated to be parts of UPS system located in the Central Control Room so as to regulate the power supply continuously for running the machines. It is contended that these items were not included in the definition of the capital goods under rule 57-Q prior to 23.9.96. The another item viz., Ceramic Fibre Blanket is used in kiln as pre-heater in heat insulation. In this regard, it is observed that Hon'ble Madras High Court in the case of M/s. SIV Industries Ltd. vs. CCE Coimbatore reported in 2001 (129) ELT 48 (Mad.) (Para 29) have observed that the word 'plant' employed in the definition of capital goods is a term of wide import. In the absence of any specific requirement that the use should be directly in the production or processing of goods it warrants a wider meaning being assigned to the word 'plant' in that definition, and not limit it only to things which directly go into the production process. It would include good which are necessary to make that production process possible. Power being essential to the process, wires and cables required to bring that power to the machines, appliances etc., are also covered by the definition of "capital goods". Since, admittedly, the items viz., fibre glass shutter and Gypon terminal are used as parts of UPS system to regulate the power supply to the machines, these items are covered by the aforestated term 'plant' in the definition of 'capital goods' and these items are therefore eligible for modvat credit under Rule 57-Q. The same interpretation should apply to the item 'ceramic fibre blanket' and the modvat credit on this item is also admissible as capital goods. With regard to the items grinding elements and grinding media, it is observed that the party had claimed the modvat credit before the Original Authority on these items as 'inputs' under Rule 57-A. The Tribunal in its decision in the case of CCE vs. New Vikram Cements reported in 1997 (95) ELT 798 (T) have held that the modvat credit on these items is admissible under Rule 57-A. Therefore, in all the items under consideration, the modvat credit is admissible. The Revenue appeal has therefore, no force and the same is accordingly, rejected upholding the order passed by the lower appellate authority.
(Announced and dictated in the Court).