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TMI Blog1998 (3) TMI 347X X X X Extracts X X X X X X X X Extracts X X X X ..... g process such as pressure gauge, vacuum gauge (e) boiler furnace sheet, fan coil unit and system cable, on the ground that they do not fall within the definition of capital goods for the purpose of Rule 57Q. In addition, a penalty of Rs.50,000/- has also been imposed. The period during which the above quantum of credit was availed is August, 1994 to January 1995. 2. The facts of the case are that the appellants are engaged in the manufacture of polyester polymer chips falling under sub-heading 3907.60 of the Schedule to the CETA, 1985. They were availing Modvat credit on the above mentioned items. Proceedings were initiated against the appellants vide show cause notice dated 9-2-1995 proposing disallowal of Modvat credit on the grounds i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Invertor and Spares and Alphaline Differential Pressure Transmitter : These are controlling devices for controlling the speed of the agitators which is used to mix polymer in poly reactor. The quality and viscosity of the polymer chips depend on mixing and proper heating of polymers during polymerisation. Hence it is held that these are instruments and apparatus covered as capital goods under Rule 57Q and Modvat credit is admissible thereon. I also note that credit has been extended to alphaline differential pressure transmitters in the case of the appellants sister concern under Final Order No. A/5-6/98-NB dated 30-12-1997. (c) Programmable Logic Controller : This helps to transfer polyester polymer chips to storage Silo from where pol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that boiler furnace sheet is not an item of capital goods, is misplaced in view of the fact that in the Malvika Steels case, cement and steel structure used in erection and fabrication of blast furnace is building material and not capital goods,which is vastly different from the present case wherein the boiler furnace sheet is a part of the boiler, and is not building material. Fan coil unit is used to maintain temperature in the control room for production of high quality polymer chips. Since these items are integrally connected with the production activity, following the ratio of the Tribunal s order in the case of CCE v. Modi Xerox Ltd. reported in 1996 (88) E.L.T. 530, in which the decision in the case of CCE v. Shanmugaraja Spinning Mi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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