Customs, Excise and Gold Tribunal - Delhi
C.C.E., Jaipur vs M/S. Shree Cement Ltd. on 20 April, 2001
ORDER
S.S. Kang :
1. The revenue filed this appel against the order-in-appeal passed by the Commissioner (Appeals).
2. In the impugned order, the benefit of MODVAT credit on asbestos under Rule 57 Q, as capital goods, was allowed.
3. Heard both sides.
4. The contention of the revenue is that asbestos is also used for sealing two contact surfaces in various equipments. Therefore, it is neither a machine not parts of any machinery. I find this issue is already decided by the Tribunal in the case of C.C.E vs Bihar Caustic & Chemicals Ltd. reported in 2000 (118) E.L.T. 196 (T), wherein that Tribunal held that asbestos is entitled for the benefit of MODVAT Credit as capital goods. The relevant portion of the judgement is reproduced below :
"The Revenue is also aggrieved by allowing of Modvat credit on compressed asbestos, fibre jointing sheets by the Commissioner (Appeals). The said item is used to seel the leakage and allowing flow of liquids during the process of manufacture from one equipment to another. The respondents have contended that without the said jointing sheet it is not feasible or possible to carry on the manufacturing process smoothly inasmuch as there will be leakage from the pipes and the manufacturing process will be badly hampered and jeo-paradised. These items are components installed at the factory. After hearing both the sides we are of the view that the said item qualifies for Modvat credit as capital goods".
5. In view of the above decision of the Tribunal, I find no infirmity in the impugned order. The appeal, filed by the revenue, is dismissed. (Dictated in Court).