1997 (8) TMI 209 - AT - Central Excise

Summary

Issues involved: Disallowance of Modvat credit by the Commissioner amounting to Rs. 95,75,168.

I. Electrical Equipments, Electric Motors, Wires & Cables:
- Electric Motor/Parts: Electric motor considered eligible for Modvat credit as a prime moving force for machinery.
- Switch Boards/Panels: Decision supported Modvat credit eligibility for regulating electric supply.
- Wires & Cables: Modvat credit admissible based on previous Tribunal decision.
- Liquid Type Rotor/Resistance: Modvat credit disallowed due to lack of evidence on function.
- Speed Controllers/Transducers/Electrical Speed Switch: Eligible for Modvat credit as per Tribunal decision.
- Bus Duct/Transformer Chokes Solonoid: Considered eligible as parts of Transformers.
- Parts of PCC/Power Control: Deemed eligible as spare parts for electronic control panels.
- Electric Appliances/Items/Electronic Equipments GI Earthing Strips: Modvat credit denied due to lack of clarity on function.
- Static Convertor: Eligible for Modvat credit as a process control instrument.
- Capacitor/Insulator: Admissible for Modvat credit as parts of Switch Boards and Panels.
- Power Control/Mould: Eligible for Modvat credit as part of Switch Boards/Panels.
- L.M. Cabinets/Lead Acid Battery: Lead Acid Battery eligible; L.M. Cabinets status unclear.

II. Material Handling Machinery/Equipments:
- Covered by Tribunal decisions supporting Modvat credit eligibility.

III. Pollution Control Equipments:
- Deemed essential for plant functioning; eligible for Modvat credit.

IV. Refractory Bricks, Lining Material:
- Eligible for Modvat credit based on Tribunal judgment.

V. Other Items (Miscellaneous Items):
- Bin Measuring Instrument/Visco Therm. Unit eligible for Modvat credit.
- Anti-Mage Filter Assembly considered eligible for Modvat credit.

VI. Clinker Manufacturing/Cement Mill Machinery etc.:
- Various equipment deemed eligible for Modvat credit as capital goods.

In conclusion, the impugned order was modified to allow Modvat credit for eligible items as per the detailed analysis and Tribunal decisions cited.