9911796707
TMI Blog2012 (11) TMI 441X X X X Extracts X X X X X X X X Extracts X X X X ..... sponge iron etc falling under Chapter 72 of the Central Excise Tariff. The applicants entered into a contract with M/s Inox Air Products Ltd for setting up an Oxygen Plant. As per the agreement certain equipments were received by the applicants and certain equipments were procured by M/s. Inox Air Products Ltd and the Oxygen Plant was set up by M/s. Inox Air Products Ltd which was further leased to the applicant. Revenue wants to deny the credit on the ground that the capital goods on which credit has availed has gone into fabrication of the Plant which is not excisable. The contention of the Revenue is that no duty has been paid on the Plant and therefore not entitled for credit. 5. Applicant relies on the decision of the Tribunal in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anufacturer of final products, subject to such procedure and conditions as may be specified by the Commissioner or the Central Board of Excise and Customs'. The DG sets in question are power plants. WDIL was engaged for initial setting up of this captive power plant in the factory of GACL. Parts, components and accessories of DG sets are capital goods in terms of the definition given in Rule 57-Q 9covered by Sl. No.5 of the Table to the Rule). Even if the DG sets which have been manufactured out of these parts and components and accessories, have not discharged duty liability, there is no bar to availment of Modvat credit duty paid on such parts, components, accessories. A comparison of the provisions of Rule 57-D(2) and 57-R(2) will clarif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is that since the DGPP is not exigible to excise the question of giving Modvat credit for the same does not arise. It has also been urged that the DGPP is not used for the manufacture of the final product. 5. Both the arguments raised are without any merit. There can be no dispute that excise has been paid on some of the components of the DGPP. Since the DGPP is exempt from payment of excise no Modvat credit can be claimed by the manufacture of the DGPP, in the present case WDIL. However, there is no dispute that this DGPP is part and parcel of the factory of the respondent. It is definitely a capital good and therefore Rule 57Q is applicable. Rule 57Q enables a party to claim credit of duty paid on capital goods by the manufacturer of s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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