Customs, Excise and Gold Tribunal - Mumbai
Nilkamal Plastics Ltd. vs Commissioner Of Customs & Central ... on 7 March, 2003
ORDER Shri J.H. Joglekar, Member (T)
1. The revenue in this appeal challenge the Commissioner's (Appeal) orders holding the following items as capital goods eligible for modvat credit. Electrical Panel Board, Power supply, Transformer, Fuses, Semiconductor devices, Capacitor, Air Compressor, Air Dryer and Oil Cooler Assembly.
2. The claim made is that these cannot be considered as capital goods on the ground that these items do not participate in the process of manufacture. Reliance is placed on the Tribunal judgment in the case of M/s. Shanmugaraja Spinning Mills Pvt. Ltd., (1997 (89) ELT 84 (T).
3. I observe that the M/s. Shanmugaraja Spinning Mills Pvt. Ltd., judgment is no longer good law. The Supreme Court have upheld the Tribunal's order holding that all electrical machineries, wires, cables etc. as admissible goods. {2001 (132) ELT 3 (SC)} The assessees are manufacturing plastics articles, which require machinery, etc. for heating of raw materials and for cooling of finished products. Air compressors are held as eligible goods in the Tribunal judgments in the case of Modern Petrofils (1997 (96) ELT 404 (T). Heating and drying machineries are also similarly eligible. (Tapioca Products v. CCE, Cochin, reported in 1999 (107) ELT 545).
4. Apart from relying on M/s. Shanmugaraja Spinning Mills Pvt. Ltd., (supra) judgment, the revenue have not shown how the machines do not qualify for availing modvat credit.
5. The revenue appeal has no merit and is dismissed.