9911796707
TMI Blog2017 (6) TMI 156X X X X Extracts X X X X X X X X Extracts X X X X ..... se, Indore v. Flex Chemicals Pvt.Ltd.[2001 (4) TMI 720 - CEGAT, NEW DELHI] observed that the Modvat Credit on inputs cannot be denied on the ground that the assessee has claimed as capital goods - the Molecular Sieve is an input as held by the Adjudicating Authority. But the Cenvat Credit cannot be denied as it was claimed as capital goods. Credit allowed - appeal dismissed - decided against Revenue. - E/170/08 & Cross Objection No.109/08 - FO/A/75965/2017 - Dated:- 29-5-2017 - Shri P. K. Choudhary, Member ( Judicial ) Shri K. Choudhary, Supdt. (AR) for the Revenue Shri N. K. Kothari, C.A. for the Respondent ORDER Per: Shri P. K. Choudhary Briefly stated the facts of the case are that the resopndents are enga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. The issue involved in this case as to whether the imported Molecular Sieve and activated Alumina would be treated as capital goods as held by the Adjudicating Authority or input as claimed by the Revenue. The use of Molecular Sieve as narrated by the Adjudicating authority in the Adjudication order is reproduced below:- 7. I find that the crux of the case rested on the fact whether or not molecular sieve is an input. BOC has submitted the copy of technical literature in respect of the molecular sieve, which says that MOLSIV type 13X-APG was the dodium form of the type X crystal structure and an alkali metal alumino-silicate. Type 13X-APG would adsorb molecules with critical diameters up to 10 angstroms. 13X-APG was specifically ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isture from nitrogen gas. The Commissoiner(Appeals), in the impugned order held that these are not capital goods. The contention of the respondents before the Commissioner(Appeals) was that if they had claimed the benefit of Modvat credit as capital goods wrongly, then the benefit of Modvat Credit as inputs be given. The Larger Bench of the Tribunal in the case of C.C.E., Meerut v. Modi Rubber Ltd. Ors. Reported in [2000 (119) E.L.T. 197 (Tribunal-LB) = 2000 (38) R.L.T. 718] held that the Modvat credit on inputs cannot be denied on the ground that the assessee has claimed as capital goods. The revenue is not disputing the use of Molecular Sieve as contended by the assessee. I find that nature of use of molecular sieve as discussed supra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on. It had a high capacity for carbon dioxide and water and maintains its capacity well above ambient conditions. It was available in a variety of shapes and sizes to suit operating needs. Chemical formula. Na86 [A102)86 (Si02)106]X H2O Regeneration : 13X-APG could be regenerated for re-use by purging at elevated temperatures or at compressor waste heat temperatures. The degree of regeneration (water and carbon dioxide removal) was dependent on the temperature and pressure of the purge gas. 6. I find that Molecular Sieve is a chemical item and is used for purification of Air-Plant. It is used for absorbing Carbon-Di-Oxide and water (moisture) from the Air being processed in the manufacture of Oxygen. There are several decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the manufacturing process. Specifically, it was observed that : As discussed by the concerned authority burnt dolomite is used so as to neutralize the acid which is formed at the time of manufacturing steel. This burnt dolomite is, therefore, used in relation to manufacturing of the final product. It has been rightly pointed out that respondent is using burnt dolamite in relation to manufacture of final product so that it may combine with acid which is formed at the time of manufacture of the steel and neutralize the said acid so that it may prevent damage to the furnace. But the used burnt dolomite is for neutralizing the acid formed in the course of manufacture of steel. Hence, the judgment cannot be said to be, in any way, ill ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce, but that would not mean that burnt Dolamite is used only for protecting the damage to the furnace. It is required to be used so as to neutralise the acid oxides formed while manufacturing steel and, therefore, burnt Dolamite is used in relation to manufacturing process for which the respondent is entitled to have benefit of exemption notification. Hence, the judgment and order passed by the Tribunal cannot be said to be in any way illegal or erroneous. (iv) Commissioner of Central Excise, Indore v. Flex Chemicals Pvt.Ltd [2002 (147) ELT 508 (Tri.-Del.)] - it has been held as under :- 5. In the Cross Objection, the respondents claimed the benefit of Modvat credit on chemical i.e. Molecular Sieve, which is used to absorb m ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
