2005 (1) TMI 434 - AT - Central Excise

Summary

Issues:
Claim of Modvat credit for Pressure Transmitter under Central Excise Tariff Heading 90.26/90.33.

Analysis:
The appellant contended that the Pressure Transmitter should be considered as capital goods eligible for Modvat credit. However, the Revenue argued that the transmitter, classified under Heading 9026/9033, was specifically mentioned for use as spare parts of Electrical Panels to control current flow, not voltage. The Revenue pointed out that Heading 9026 covers instruments for measuring liquids or gases, not for controlling voltage.

The appellants sought Modvat credit for the Pressure Transmitter under Heading 90.26/90.33 of the Central Excise Tariff. During the relevant period, these headings were not classified as capital goods under Rule 57Q. The appellant claimed the transmitter was part of an electrical panel, but the detailed use statement classified it under Heading 90.26/90.33, which deals with instruments for measuring liquids or gases and their parts. The Tribunal found that the appellant failed to prove the actual use of the transmitter as part of an electrical panel, leading to the dismissal of the appeal.

In conclusion, the Tribunal upheld the denial of Modvat credit for the Pressure Transmitter under Heading 90.26/90.33 of the Central Excise Tariff. The decision was based on the classification of the transmitter as an instrument for measuring liquids or gases, not for controlling voltage as claimed by the appellant. The failure to provide evidence of the transmitter's actual use in an electrical panel led to the dismissal of the appeal.