Customs, Excise and Gold Tribunal - Mumbai
Century Rayon vs Commissioner Of Central Excise on 21 November, 2003
ORDER S.S. Sekhon, Member (T)
1. Appellants were denied credit on various items which were claimed by them to be eligible under Rule 57Q. The learned Advocated has prepared a chart of the items and the case law by which the eligibility is said to be covered. That is as follows -
Sr,No. Description of goods Amount (Rs.) Usage Denial Goi'crcd"
l.
Valve Positioner 677.00 Machinery Parts/ Components/accessories Declaration filed beyond the period of 3 Months and the same is not condonable J.B.M. Tools_,V/s_. Commissianer.of Central excise Pune reported in.2002 (144) E.L.T. 561 (Tri-Mumbai)
2. Filter Apparatus.for Air & Gases 2193.00
-do-
-do-
-do-
3;
Sol, Valve press 492iOO
-do-
-do-
-do-
4- Sol. valve Dress 328,00
-do-
-do-
-do s.
Compressor for Diaphragm valve 90,00
-do-
-do-
-do-
6, Boiler with accessories 80800.00
- do-
-do-
-do-
7. Lance Assembly 3075.00 do -
-ao-
-do-
8. components 01 weighing machine 1640.00
-do-
-do-
-do-
9. Components of weighing machine 1640.00
-do-
-do-
-00-10. Polypropelene filter cloth 180.00
-do-
-do-
-do-
11. I/CComponents 1108.00
-do-
-do-
-do-
12. Spare for Rotameter 167.00
-do-
-do-
-ao-
13. P.H. Indicator 2779.00
-do-
-do-
- do -
14. Spare for Rotameter 1117.00
-do-
-do-
- do -
15. Sequence Cord 315.00
-do-
-do-
-do-
16. F.F. 63 SL Starter M.K. 1054.00
-do-
-do-
-do-
17. Tar Plastic 32.00
-do-
-do-
-do-
18. Seetul N-68 844,00
-do-
-do-
-do-
19..
Cyndol TC enklo 3612.00
-do-
-do-
.- do -
20. S.P. Diaphragm 360,00
-do-
-do-
-iio -
21. FRPPipe 4993.00 Used in HCL Plants for gravity flow of acid from furnance absorber to HCL storage tank. FRP . Pipe is also used for transferring of Tina] Product, Not used for producing or processing of any goods or for bringing about any change in the substance for the manufacture of Uppeppariges Sugar Industries ttd v/s CC13. Mcerut reported in 1998 (98). ELT166(T) Spare Part covered by CDE&C Circular No. 276/110/96 T1U.I data! December 2, 1996.
22. Cover 1518,00 it os used for bearing housing of water circulation pump in the chemical plant.
It is not used directly for producing or processing of goods for the manufacture of final products or dots not fall under any of the explanations given under the definition of capital Roods CC1"; V/s Jawnhar Mills. ReporledinZOOl(132) E.L.'f. 3 (S.C) Spare Pan covered by CBE&C Circular No. 276/1 10/96 TRIJ dated December 2, 1996.
under Rule 570.
23. Valve Spindle 16560.00 It regulates the movement of valve and is a vital part of the value and without which the valve cannot function Not tailing within the purview of Rule 57Q CCE V/s Jawahar Mills. Reported in 2001 (132)E.L.T. 3 (S.C) Spare I'art covered by CBE&C Circular No. 276/1 10/96 TRU dated December 2, 1996.
24. FRP Bond 1491.00 They arc used in FRP Pipes for movement of transferring acid from one place to another in the plant.
Not used in the manufacture of final product U|pper Ganges Sugar industries Ltd v/s CCE:., Meerut reported in 1998 (98)ELT 166(T).Spare Part covered by CBE&C Circular No. 276/110/96 TRU dated December 2, 1996.
25. Spares for Radium Gear Box i 100.00 It is used to reduce the speed of the gear box Not used for producing or processing the goods.
CCE V/s Jawahar Mills. Reported in 2001 (132)E.L.T. 3 (S.C) Spare Part covered' by CBE&C Circular No. 276/110/96 TRU dated December 2. 1996.
26. HAWCOAA Resisting compound 5200.00 l( is used us paste in tightening the various parts of pipe header and equipment, it 11 is an item or general use and does not fall within the meaning of capitalgoods.
Grasim Industries V/s CCEs Indorc reported in 2001 (137) E.1.T. 1341 (Tri.
-Del.) prevents leakage ant protects the pipes from damages.
27. Hydrogen gas cylinder valve and Aluminium Bronze, Chlorine valve and Chlorine cylinder valve 48890.00 These.valves are part and parcel of the cylinder to prevent leakage of gas.
Not related for the manufacture of the final products Siel Sugar v/s CCE, Meerut (1998(99)E.L.T. 54)
28. Gears 4862 .00 They are spare parts and are meant for speed reduction/, increase Mas a general use and is not related to the manufacture of final products, Century Cement v/s CCE (I907(95)ELT 655)
29. Monitoring System 87376.00 It is used as a monitoring unit for measuring the current of each mode of mercury cell in cell house in manufacturing caustic soda U does nol fall within t|je purview of capita], goods as defined in Rule S1Q.
Jawahar Mills v/s CCE reported in 1999(108) EL T 47)
30. Chlorine container 725628.00 Specially designed for storing of compressed liquid ;hlorine.
Not used for bringing about any change in any substance or used for producing or processing of any goods used in the manufacture of final product.
Commissioner ol Central Excise V/s Hukumchaml Jute Industries Ltd. reported in2001 (137) E.L.T. 633 (Tri.-Kolkata)
31. Air Conditioner 38727.00 Used for maintaining low temperature for the computer used in process control.
.No direct role in 'manufacture of final product.
Hindustan Nationol Glass And Industries Ltd V/s C.C.E., New Dnihi-m reported in 2002 (150) ./.,.'!. 570 (Tii. - Dei.)
32. Spares for valve (Brass washer) 600.00 Spare part of toner valve to keep the spindle of toner valve file for operation.
It docs not fall within the purview of capital goods as defined under Rule 57Q.
CCE V/s Jawahar Mills. Reported in 2001 (132) E.L.T. 3(S.C)Spare' Part covered by CBE&C Circular No. 276/1 10/96 TRU dated December 2, 1996.
33. P.D. Pumps 9491.00 PDF is used for pumping HCL from production tank to storage tank The pump just functions in transferring HCL and therefore not directly used in the process of manufacturing.
Evercady Industries India Ltd V/s CCE reported in 1997 (93) E.L.Tn
34. Parts & components of P.O. Pumps 2906.00 Spare parts and components of P.O. Pumps Credit not admissible in terms of explanation of Rule 57Q.
CCE V/s Jawahar' Mills. Reported in 2001 (132) E.L,T. 3 (S.C)Spare Part covered by CEE&C Circular No. 270/1 10/96 TRUdjtcd December 2, 1996.
35. FRP Sleeve case ling 885.00 It is used in antico pumps for handling HCL.
Credit not admissible in terms of explanation of Rule 57Q.
CCE V/s Jawahar Mills. Reported in 2001 (132) E.L.T. 3.(S.C)Spare Part covered by CBE&C Circular No. 276/1 10/96 TRU dated December 2, 199'i.
36. Sleeves 462.00 Spare part of pump used in pumping chemicals Credit not admissible in terms of explanation of Rule57Q.
CCE V/s Jawahar Mills. Reported in 2001 (132) E.L.T. 3 (S.C)Spare Parl covered by CBE&C Circular No. 276/11 0/96 TRU dated December 2. 199'i.
37. Neoprene rubber gasket 2400.00 Used as spare parts in the FRP pipelines which are used for carrying various chemicals and liquids.
It does not fall within the ambit of capital goods as defined under Rule S7Q.
Spic Limited V/s CCE reported in 2000(166) ELT 579. CCE V/s Jawahar Mills. Reported in 2001 (132) E.L.T. 3 (S.C)Spare Part covered by CBE&C Circular No. 276/1 10/96 TRU dated December 2. 19%.
38. Globe valve with body and bonnet 12842.00 Used in controlling the flow of chlorine gas and liquid chlorine in the It does not fall within the purview of capital goods as defined under Rule CCE, Indore V/s Nivin Chemical Enterprise reported in 2001 (135) .ELT 777 chlorine plant.
570.
39. Spare trim for control Valve 790.00 It is a spare part of diaphragm valve used for controlling flow of liquid chemicals.
Not used for bringing about any change in any substance or used for producing or processing of any goods used in the manufacture of final product.
E.I.D. Parry Limited V/s CCE Trichy reported in 2002 (150) ELT (765). CCE V/s Jawahar Mills, Reported in 200 1 (132)E.LT 3 (S.C)Spare Part covered by CBE&C Circular No. 276/1 10/96 TRU dated December
2. 1996)%.
40. Cast Carbon Steel Globe 650.00 Used in handling of liquids.
Not used directly in the manufacture
-do-
41. Spare Diaphragm valve 24<,9.00 Used in various f&ipbragm valve used for controlling flow of liquid chemicals.
It is a item of general use and it docs not fall within the purview of capital goods as defined under Rule 570.
-do-
42. Spare for -chloriiTe valve 14196.00 Spare of Chlorine valve.
Not directly in used in manufacture of final product.
CCE V/s Jawahar Mills. Reported in 2001 (132)E.L.T. 3 (S.C) Spare Part covered bv CBE&C Circular No".276/110 /96% TRU dated December 2. 1996,
43. Air type Diaphragm Valve 1690.00 It is a spare part of diaphragm valve used for controlling flowoiliquid .-chemicals.
Not used for bringing about any change in any substance or used for producing or processing of any goods used in the manufacture of final oroduct.
CCE V/s Jawahar Mills, Reported in 2001 (132)E.I,.T. 3 (S.C)Spare Part covered by CBE&C Circular No. 276/11 0/96 TRU dated December 2. 1996.
44.-
Air type Diaphramn Valve 1690.00 It is a spare part of diaphragm ''alve used for controlling flow of liquid chemicals.
No! used for bringingabout any change in any substance or used for producing or processing of any goods used in the manufacture of final product.
CCE V/sJawahar Mills. Reported in 2001. (132) E.L.T. 3 (S.C)Spare part covered by CCE&C Circular No. 27C/1 10/96 TRU dated' December 2,1996.
15. Mechanical seal 758.00 Used as spare part of nniidopropykiK' pump to prcv/int It is a item of general use and it docs not fall within CCE V/sJawalrar Mills. Reported in 2001 (132) ELT. 3 (S.C) leakage of HCI. from pumps the pin view of capital goods as defined under Rule 57Q.
Spare Part covered by CB1-&C Circular No. 276/1 10/96 TRU dated December 2. 1996
46. Lubricating -3;1 Grease Nipple 27705.04 Used as lubrication for maintenants of various machinery & its parts in the plant Does not fall withinthe purview of capital goods as defined under Rule 57Q.
Covered by Larger bc.icli decision in Commissioner of Customs & C. Ex V/s Modi Rubber Lid. reported in 3000(11 9) E.L.T 197.
47. Malic Resin 4316.00 Inputs to capital foods used for softening of the water Denied on the ground that san/c are not capital good Saurashlra Chemicals Versus Collector Ol'C'cnlnil Excise, Uajkot reported in 1995(80)E.1,.T. 302 (Tribunal)
48. Organicperoxide 2700.00 Used as a catalyst in FRP lining on metal surface in Rayon T/C plant to avoid corrosion due to acid.
Not used in manufacture of final product.
Madras Aluminium Co. Lid. Versus Commissioner Of C. Ex., Coimbatore reported in 2001 (136) E.L.T. 182 (Tri. -Cliennai)
50. Rubber Moulding 6055.00 It is used for controlling the flow of the spinbath used for manufacturing of yam.
Not used in manufacture of final product Indian Seamless Steels & Alloys Ltd. V/s Commissioner Of C. Ex., Pune 1999(1 13) EL.T. 222 (Tribunal)
51. Shaft for Industrial Fans(sick) 2575.00 Used as spare of fan: for removing gases from spinning halls. If this gases are not removed it is very difficult to carry out manufacturing process.
Does not fall within the purview of capital goods as defined under Rule 570, Abilities India Pistons & Rings Ltd. v/s CCE, Mccrut (2000 ( 120) ELf.
134) S2;
Counter Scale 2684.00 Original duty paying documents defaced by the department. ' /'mrf-same will be produced during personal hearing.
Modvat credit availed on the Xerox Copy of the invoice (The OIO and the OIA docs not mention about Xerox copy but it denies modvat Order travels beyondShow Cause Nolice credit on the grounds of non installation of the item. (Modvat credit denied on wroiic roolinu)
53. Pressure Measuring System 8394.00
-do-
-do-
-do-
54. Single Loop Digital Controller 6732.00
-do-
-do-
-do-
55. I/P converter 1538.53
-do-
-do-
-do-
56. Manifold 1170.00 do-
-do-
- do -
57. Ingold combined pin 1 192.79 P/H indicating controller for controlling Ph value of condensate liquid in A/T Not used in manufacture of final product CCE v/s Seshasayee Paper & Boards Ltd. (1997 (93) EI,T75)
58. RTD Assembly 131.00 Original duty paying documents defaced by the department. And same will be Mod'at credit availed on the XerckCopyofthe invoice Order travels beyond Show Cause Notice produced during personal hearing.
(Thc OlO and the OlAdoes not mention about Xerox codv but it denies modvat credit on the grounds of non installation of the item. (Modvat credit denied on wrong footing)
59. Rubber Studs 862.00 Used in spinbath section of Rayon plant to control the flow of the spinbath solution Not used in manufacture of final product E.I.D. Parry Limited V/s.CCE Trichy reported in 2002 (150) ELT(765).
60. HDPE sheet 2442.00 Used for making "insert" for uniform distribution of washing solution during washing stage of cakes Not used for manufacture of final product CCE V/s Jawahar Mills. Reported in 2001 (132) E.L.T. 3 (S.C)Spare Part covered by CBE&C Circular No. 2 76/11 0/96 TRU dated December 2. 1996.
61. Industrial 30122.00 Original duty paying Modvut credit Order travels boycnd Show Valves documents defaced by the department. And same will be produced during personal hearing. .
availed on the Xerox Copy of the invoice (The OIO and the OIA does not mention about Xerox copy but it denies' modvat credit on the grounds of non installation of the item. (Modvat credit denied on wrong footing Cause Notice
62. DC Current Recorder 1159.00
-do-
-do-
Order travels beyond Show Cause Notice
63. Poly Ph stimulator 1021.00
-do-
-do-
- dO -
64. AC Rectifier Voltmeter 130.00
-do-
-do-
-do-
65. Thcrametcr 300.00
-do-
-do-
-do-
66. Ingold Ph Electric 876.38 P/H indicating controller for -controlling PH valve Thesc are the item, which are not used for processing / CCE v/s Seshasayec Paper & Boards Ltd. (1997 (93) ELT 75) of sendensate liquid inA/T producing of any product also are not claimed as components of such machines covered by Rule
570. No modvat civilii allowed.
67. Fibre Glass 6539.48 Original duty paying documents defaced by the department. And same will be produced during personal hearing.
Modval credit availed on the Xerox Copy of the invoice (The OIO and the O1A docs not mention about Xerox copy but it denies modvat credit on the grounds of non installation of the item.
(Modvat credit denied on wronc footing Grasim Cement's v/s CCE 1997(96) ELT 354)
68. Graphite products 420.00 Used for make up of Electrodes which is fitted in CS2 furnace Not used for functions prescribed under Rule 57Q CCE V/s Jawohnr Mills. Reported in 2001 (132) E.L.T 3 (S.C)Spare Part covered by CBE&C Circular No. 276/1 10/96 TRU dated December 2. 19%.
69. Bright Steel Bars 5014.00 Used for supporting load duct which arc filled in spinning machine Not covered under Rule S7Q.
Gangeshwar Ltd. Versus Commissioner Of. ',...(sick) Ex., Meerut 2002 (150) E.L.T. 242 (Tri. -Del.
70. Bearing Nut Lock 460.88 Used in pot motor to nin the pot on spinning machine to collect the spun yam CCE V/s Jawahar Mills. Reported in 2001 (132) E.L.T. 3 (S.C)Covered by CBE&C Circular No. 276/110/96 TRU dated December 2. 1996.
71. 'O' Ring 179.40 As per assessec's submission it is used in Boiler house for How meter manifold assembly to avoid leakage Items not covered under Rule 57Q CCE, Trichy v/s Dalmia Cements (2002 (147) E.L.T. 1000) Samtel(India)V/s CCE (2000 (115) BUT 738)
73. Mechanical Appliance parts & Regulator 108499.0<
-do-
-do-
CCE V/s Jawahar Mills. Reported in 2001 (132) E.L.T. 3 (S.C)Covered by CBE&C Circular No. 276/1 10/96 TRU dated December 2. 1996.
74. Air Regulator parts & Regulator 1313.57 It is observed that items listed at S.N0.107& 108 are used in workshop for maintaining air Used for maintainence and repairs CCE V/s Jawahar Mills. Reported in 2001
032) E.L.T. 3 (S.C)Covered by pressure in pneumatic instruments & air compressor required for production compressed air at 70-psiR pressure.
CBE&C Circular No. 276/1 10/96 TRU dated December 2, 1996.
75. Mist Eliminaior 1 0633.00 Original duty paying documents defaced by the department. And same will be produced during personal hearing.
Modvat credit availed on the Xerox Copy of the invoice (The OIO and the OIA docs not mention about Xerox copy but it denies modvat credit on the grounds of non installation of the item. (Modvat credit denied on wrong footing) Order travels beyond Show Cause Notice
2. The appeal is therefore allowed as remand to the original authority to consider the use and coverage after considering the case law, and the submission the appellants may add at the hearing to be given. Thereafter decide the eligibility.
3. Appeals allowed as remand to original authority for denovo decisions.
(Pronounced in Court)