Customs, Excise and Gold Tribunal - Delhi
C.C.E., Chandigarh vs M/S. Vardhman Spg. & General Mills on 11 May, 2001
ORDER Ms Jyoti Balasundaram, Member (J)
1. The Revenue has filed two appeals out of single order in appeal No. 1709 dated 30.9.99. The period in dispute is October 94, December 94 and amount in dispute is Rs. 98,238/-. Since there is only one order in appeal and only one order in review relating to the above period, Ld. Counsel for the respondent is correct in his submission that one appeal alone is necessary. Therefore, appeal No. E/133 of 2000 is not required and dismissed as duplication. I shall proceed to dispose of appeal No.E 86/2000-NB.
2. Commissioner has extended modvat credit on items such as electric panel, weighing scales etc. on the ground that they are capital goods, eligible for modvat credit under Rule 57Q of the Central Excise Rules. Function and use of items as set out by the lower appellate authority and not contested by the Revenue in its appeal (SIC)memorandum is shown below:-
1. Electric Panel It is used in the production department in order to provide required electricity to each and every machine. Therefore, It is an integral part of plant and machinery.
2. Weighing Scales It help processing department and parts thereof. to manufacture goods and very much used in relation to manufacture of final product.
It has specifically provided under Rule 57Q various weighments are to be undertaken at various levels in order to continue further process of manufacturing.
3. Processing Materials are carried in the Trolly processing trolly from one machine to the other. These help production department to carry material in bulk and at a time in order to feed material in complete to further process.
4.Fibre Glass It is used in humidification plant. This plant is essential plant for spinning mills.
Different level of humidity condition are required to be maintained in processing block of spinning mill. Fibre Glass is used for installation of humidification plant.
5. Gauge It is essential spare required in spinning mill. It is being used in order to maintain various settings of various plant and machinery in order to get required production from the machines.
6. Heater It is an apparatus which is used for conditioning of yarn. Hence, eligible to be covered under definition of Capital Goods U/R 57 Q.
3. It has been held that in a series of decisions of the Tribunal including decision of the Larger Bench in the case of Jawahar Mills Vs CCE Coimbatore 1999(109) ELT 47 that items of the above kind are capital goods covered by Rule 57Q, hence eligible to modvat credit. Following ratio of the above cited decision, I hold that there is no infirmity in the impugned order and accordingly uphold the same and reject the appeal.