9911796707
TMI Blog2017 (6) TMI 156X X X X Extracts X X X X X X X X Extracts X X X X ..... rding to the Revenue, the said material is input in nature. The Adjudicating Authority disallowed the Cenvat Credit of Rs. 30,15,844/- together with interest and also imposed penalty of equal amount of credit and appropriated the amount as deposited by them. By the impugned order, the Commissioner(Appeals) set aside the Adjudication order. Hence, Revenue filed this appeal. 2. Heard both sides and perused the appeal records. 3. The ld.Counsel raised a preliminary objection that the Review order of the Revenue is defective in so far as one of the Members of the Committee of Commissioners has not put the date in the signature. He relied upon the decision of the Tribunal in the case of Commr. of C.Ex., Meerut-I v. Paswara Papers Ltd. [2013 (2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l part of Air Pre-Purification Unit, which removes the moisture and CO2 content in the air and produces dry CO2 free air for processing. It had a high capacity for carbon dioxide and water and maintains its capacity well above ambient conditions. Sri Bhattacharya in his statement under section 14 also stated that molecular sieve was used in the Air Separation Units (ASU) and with the help of the product molecular sieve and they got moisture free air, hence, it was an addorbent as appeared from the literature submitted to the department. The heading 84.21 of HSN covering the items i.e. centrifuges, including centrifugal dryers, filtering or purifying machinery and apparatus for liquid or gases, says particularly related to the instant case t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d unambiguously that the credit of duty paid on molecular sieve can be allowed under the category of input and cannot be said as qualified under the category of capital goods." In the impugned order, the Commissioner(Appeals) concluded that :- (i) Molecular Sieve is an integral part of the Pre-Purification Unit (PPU) machinery. (ii) It is subjected to repeated regeneration and subsequent use. (iii) Its average life span is around 10 years. (iv) HSN Explanatory Note to the effect that chemical substances shall also fall under Heading 84.21. The ld.Counsel appearing on behalf of the respondent argued the matter on merit and on limitation. The ld.A.R. appearing on behalf of the Revenue submitted that the Adjudicating Authority had no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ning to remove fungus and unwanted deposits therein used to maintain temperature in filament yarn plant of assessee clean-flo and floron gas to be regarded as inputs used in relation to manufacture of final products and eligible for Modvat credit under Rule 57A of the erstwhile Central Excise Rules, 1944 [1998 (98) ELT 507 (Tri) relied on]. (ii) Commissioner of C.Ex., Bangalore v. Escorts Mahle Ltd. [2003 (154) E.L.T. 321 (S.C.) - The issue involved is whether on the facts and in the circumstances of the case the appellate Tribunal is right in law in holding that the applicants are not eligible to Modvat Credit in respect of Ramming Mass, Fibre glass and filter mesh used in or in relation to the manufacture of pistons on the ground ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td. [2004 (165) E.L.T. 395 (S.C.)] - it has been held as under :- "2. The issue involved before the Tribunal was - whether the assessee was entitled to the benefit of the Notification No.217/86-C.E. for burnt Dolamite used in steel making furnace for fettling banks and bottoms or not The Tribunal allowed the said appeal by relying upon its previous decisions as well as the decision rendered by the Calcutta High Court in Singh Alloys & Steel Ltd. v. Asstt. Collector of Central Excise reported in 1993 (66) E.L.T. 594. 3. It has been pointed out that manufacturing steel, acidic oxides are formed. This acid is required to be neutralized, otherwise it affects the banks and bottoms of the furnace. For neutralizing the acid oxides which are fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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 the Molecular Sieve as contended by the assessee. 6. In view of the above mentioned decision of the Larger Bench of the Tribunal, the appellants are entitled for the benefit of Modvat credit on the goods, in question as inputs, on verification by the Assistant Commissioner. The appeal, filed by the revenue, is dismissed and the Cross Objection, filed by the respondents, is allowed." 7. After analysis of the above decisions, I find that the Tribunal in the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
