2009 (5) TMI 280 - AT - Central Excise

Admissibility of the following goods to capital goods credit (1) PLC Hardware; (2) CCTV System; (3) Radio Remote Control; (4) Memory Modules; (5) Camera Mount and Monitor Mount; and (6) Furosplit FN syrup and Furosplit FN activator - PLC Hardware; CCTV System; Radio Remote Control are instrumentation materials used in the control system of the plant for monitoring the manufacturing activity; that all the high speed rotating systems are controlled by the PLC Hardware. CCTV system is a remote eye which controls the fuel process. The Radio Remote Control is also used to monitor the manufacturing activity. Memory Module accessories are instrumentation spares used in direct control system. All these items are, therefore, in the nature of components or accessories of the smelter plant which are eligible to credit. - As regards Camera Mount and Monitor Mount, they are used to monitor the whole smelter. Camera/Monitor Mount is part of the CCTV. Therefore, they are to be treated as accessories of the smelter plant and hence eligible to credit. - As regards, Furosplit FN syrup and Furosplit FN activator, these are pasting materials used in the gas cleaning section of the sulphuric acid plant, credit is rightly held to be admissible Revenue s appeal rejected

Summary

Issues:
Admissibility of goods to capital goods credit in a factory manufacturing copper anode under Heading 74 of the Central Excise Tariff Act, 1985.

Analysis:
The dispute in the appeals revolved around the admissibility of various goods to capital goods credit in the factory of the respondents, who are manufacturers of copper anode under Heading 74 of the Central Excise Tariff Act, 1985. The goods in question included PLC Hardware, CCTV System, Radio Remote Control, Memory Modules, Camera Mount, Monitor Mount, Furosplit FN syrup, and Furosplit FN activator.

The Tribunal considered the nature and usage of each item to determine their eligibility for capital goods credit. It was established that PLC Hardware, CCTV System, Radio Remote Control, and Memory Modules were instrumental in the control system of the plant for monitoring manufacturing activities. These items were deemed to be components or accessories of the smelter plant falling under an eligible heading, thus qualifying for capital goods credit under Rule 57Q of the Central Excise Rules.

Regarding Camera Mount and Monitor Mount, it was found that they were essential for monitoring the smelter plant through an advanced control system. These mounts were considered as accessories of the smelter plant and were therefore eligible for credit.

Furthermore, the Tribunal analyzed Furosplit FN syrup and Furosplit FN activator, recognizing them as pasting materials used in the gas cleaning section of the sulphuric acid plant. These materials were deemed components of the sulphuric acid plant's machines and were held eligible for capital goods credit.

Consequently, the Tribunal upheld the extension of credit on all disputed items in the appeals, affirming the benefit of credit and rejecting the appeals. The cross-objections, being replies to the Revenue's appeals, were dismissed accordingly.

In conclusion, the judgment clarified the admissibility of various goods to capital goods credit in a manufacturing facility, emphasizing the importance of analyzing the nature and usage of each item to determine eligibility under the relevant provisions of the Central Excise Rules.