2001 (9) TMI 682 - AT - Central Excise

Summary

Issues:
1. Rejection of Modvat credit claim on compressors and accessories.
2. Grant of Modvat credit on capital goods.
3. Justification of granting relief on Multimax Boilers.
4. Appeal against the grant of Modvat credit on Multimax Boilers.

Analysis:
1. The Commissioner rejected the claim of Modvat credit on compressors and accessories used for producing chilled water and brine to cool reactants. The appellant relied on various judgments, including those of larger bench cases, to support their claim that the items should be considered as capital goods eligible for Modvat credit. The consultant argued that the issue is well-settled based on previous tribunal decisions. The revenue, however, disagreed with this classification.

2. The Tribunal noted that the issue of Modvat credit on the items in question is covered by a Larger Bench Judgment in the case of Jawahar Mills Ltd. The Tribunal found that the items are indeed capital goods, as per previous judgments, and accepted the appellant's prayer to decide the stay application and appeal together based on the ratio of the noted judgment. Consequently, the Tribunal allowed the stay application and appeal, providing consequential relief if any.

3. Regarding the relief granted on Multimax Boilers, the revenue contended that the Commissioner was not justified in granting the relief as the boilers were not covered by a specific notification. However, the consultant pointed out that the Commissioner's decision was based on relevant tribunal judgments. The Tribunal found that the issue had already been decided in previous judgments cited by the consultant and that the Larger Bench Judgment of Jawahar Mills Ltd. also covered this issue. Therefore, the Tribunal confirmed the Commissioner's order on this matter by rejecting the revenue's stay application and appeal.

4. In conclusion, both appeals were disposed of based on the above analysis. The Tribunal upheld the grant of Modvat credit on the compressors and accessories as capital goods, following the precedent set by previous judgments. Additionally, the Tribunal confirmed the relief granted on Multimax Boilers, as it was in line with established tribunal decisions and covered by the Larger Bench Judgment.