Customs, Excise and Gold Tribunal - Delhi
Commissioner Of Central Excise vs P.G. Foils Ltd. on 10 April, 2000
Equivalent citations: 2000(120)ELT127(TRI-DEL)
ORDER G.A. Brahma Deva, Member (J)
1. This is an appeal filed by the Revenue. The issue relates to availing Modvat credit on cylindrical vertical tank to be used for storage of different chemical. The Assistant Commissioner has disallowed the credit on the ground that cylindrical vertical tanks are used as a container for storage of chemical used by the party. These containers cannot be termed as capital goods as these do not take part either directly or indirectly in the manufacture of final product. On an appeal filed by the party the Commissioner (Appeals) following the decision of the Tribunal in the case of Dabur India Ltd. v. CCE Meerut reported in 1998 (98) E.L.T. 674 (T) held that these tanks are used for keeping materials during the process of manufacture of final product are eligible capital goods for Modvat credit being equipment or part of plant used for processing goods.
2. Shri A.K. Jain, ld. JDR appearing for the Revenue submitted that the cylindrical vertical tanks are not used in processing the goods as such and accordingly, they are not eligible capital goods to avail the Modvat credit. He also submitted that the decision relied upon by the Commissioner is not applicable to this case.
3. On the other hand, Shri Manik Chand, ld. Consultant submitted that Tribunal has been consistently taking this view following Dabur India (supra). He referred to the latest decision of the Tribunal in the case of Ayes Dyes & Chemicals v. CCE, Chennai reported in 2000 (116) E.L.T. 524 (T).
4. In the facts and circumstances and in view of the case law referred to by the respondent's Counsel, I find that this issue has been well considered in the aforesaid cases and since the Commissioner has followed the decision of the Tribunal in holding the same, I do not find any infirmity in the order. Accordingly, appeal is dismissed.