1999 (9) TMI 282 - AT - Central Excise

Summary

Issues:
Denial of Modvat credit for pipe fittings, cables, and dehumidifiers.

Pipe Fittings:
The Commissioner denied Modvat credit for pipe fittings, stating they were not used for processing goods or bringing about any change in substances. The appellant argued that previous Tribunal decisions supported their claim that similar pipe fittings were eligible for Modvat credit. The judge found that as pipe fittings were components of pipes used for transferring liquid or air, they did not need to independently show usage for processing goods. The appeal was allowed for pipe fittings.

Cables:
The Commissioner disallowed Modvat credit for cables, asserting they were not used for processing goods. The appellant referenced a Larger Bench decision that included cables as eligible for Modvat credit under Rule 57Q. The judge agreed with the appellant, citing the precedent and allowed the appeal for cables.

Dehumidifiers:
Modvat credit for dehumidifiers was denied by the Commissioner, claiming they were not used for processing goods or changing substances. The appellant relied on a Larger Bench decision that considered dehumidifiers as capital goods. The judge found the dehumidifiers essential for obtaining the final product and allowed the appeal for dehumidifiers. The penalty imposed was also set aside.