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TMI Blog2008 (12) TMI 566X X X X Extracts X X X X X X X X Extracts X X X X ..... he Respondent. [Order per : B.S.V. Murthy, Member (T)]. These appeals have been filed by the appellants against three orders of the Commissioner (Appeals). Since all the three appeals relate to eligibility of Modvat credit on capital goods, all of them are taken up simultaneously and this order is being passed. 2. Heard both the sides. 3.1 The learned CA first of all submitted that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unal) = 2005-TIOL-225 (Bang). 3.2 On merits, he submitted that even though the Commissioner (Appeals) accepted that forged articles of iron 8s steel are components, he has denied the credit on the ground that they have to undergo some further operation such as machining before being put to use. He submits that further machining does not render the components ineligible for Modvat credit and he p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... round that the applicant had not argued this point. Being a legal point, it is his submission that they are eligible. The third category of the capital goods on which the credit has been disallowed are steel sheets, plates, articles of alloy steel, structural part etc. The Commissioner (Appeals) found that these items can be described as raw materials and they cannot be used directly as parts or s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er. As regards other issue, he reiterates the order of the Commissioner (Appeals). 5. We have considered the submissions. As regards maintainability in view of the definition of AC or DC and also in view of the fact that AC and DC are used interchangeably and in all Sections and Rules they have been used interchangeably, we do not find any merits in the contention of the learned CA. We also noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are relevant and applicable. Similarly irrespective to the chapter heading under which components, spares and accessories fall, the credit would be admissible if the machines or equipment of which the same are parts/spares/components or accessories are eligible. As pointed out by the learned CA, the decision of the Larger Bench in the case of Union Carbide Ltd. (supra) covers their case. On the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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