Customs, Excise and Gold Tribunal - Mumbai
Lloyds Metals & Engineers Ltd. vs Commissioner Of Central Excise And ... on 14 August, 2001
JUDGMENT
Gowri Shankar, Member (Technical)
1. The question for consideration in this appeal is the eligibility to modvat credit under Rule 57Q of the duty paid on hot rolled steel plates that the appellant used in constructing the foundation for the day bins that was installed in the factory. These day bins are storage bins in which the appellant stores its raw material, and other goods such as cold rolled steel as well as finished goods.
2. The reasons that the Commissioner advanced for denying the credit is that they become part of immovable property, and such immovable property therefore disqualifies for being considered as capital goods.
3. In our decision in United Phosphorous Ltd. v. CCE (appeal E/2356/96), we, after discussing the relevant provisions of the rule and taking note of the decision in Mahalakshmi Glass Works Ltd. v. CCE 1999 (113) ELT 558, we had not found it possible to uphold the denial of the credit of the duty paid on capital goods solely for the reason that, in the course of their use, they become permanently attached to the earth or to anything that was attached to earth and thus become immovable property. The reasoning would apply to the facts before us.
4. The appeal is accordingly allowed and the impugned order is set aside.