Customs, Excise and Gold Tribunal - Delhi
Cce, Jaipur vs M/S. Rajasthan Spg. & Wvg. Mills Ltd. on 26 December, 2000
Equivalent citations: 2002(149)ELT328(TRI-DEL)
ORDER
V.K. Agrawal
1. The issue involved in this appeal filed by Revenue is whether Modvat credit is available to the Respondents M/s. Rajasthan Spg. & Wvg. Mills Ltd. in respect of chemicals used for cleaning of D.G. Set under Rule 57A/B of the Central Excise Rules.
2. When the matter was called no one was present on behalf of the respondents inspite of notice. I observe that even during the last hearing on 6th October, 2000 no one had appeared on behalf of the Respondents. I, therefore, take up the appeal for disposal after hearing Shri A.K. Jain, learned D.R. and perusing the record. The learned D.R. submitted that the impugned goods is a chemical used for cleaning/maintenance purpose of D.G. set and accordingly it cannot be treated as a part/component or accessory of D.G. set; that the chemical cannot be treated as inputs under Rule 57A/57B as these are only used for cleaning D.G. Sets.
3. Reference was made to the decision of the Larger Bench of the Tribunal in the case of CCE, Meerut vs. Modi Rubber Ltd., 2000 (38) RLT 718 wherein it was held that unless the machinery is lubricated with the lubricants, heat will be generated on account of mechanical friction affecting the process of manufacture and the lubrication of the machine and machinery is essential for their working. Larger Bench also held that it does not matter whether the goods are used in the machinery or for the purpose of machinery; lubrication of the machinery is an activity which is concerned with or pertaining to the manufacture of the finished goods. It is not in dispute that the chemical in question is used for cleaning sets which is used in the manufacture of the final product. Accordingly, following the ratio of the decision of the Larger Bench, the Respondents are eligible to avail of Modvat credit in respect of chemicals used for cleaning/maintaining D.G. sets. The appeal is, therefore, rejected.