9911796707
TMI Blog2004 (8) TMI 201X X X X Extracts X X X X X X X X Extracts X X X X ..... y these are used as spares nor we consider that chequered plates can be considered as component parts or spare parts of machinery. The decision relied upon are not applicable in the present case as in the cases relied upon by the appellants there is a specific finding that CI plates are used in the base for boiler or chequered plates are used to support various machinery parts of machines. In the present case, the appellants have not identified that how these chequered plates/hard plates are used as components of machinery. Therefore in the absence of any evidence that these are really component parts of machinery we do not find any deficiency in the order of Commissioner (Appeals). Rejection of credit on columns of heavy fabricated structures and bracings, we find that the lower authorities have given the finding that columns and bracings are in the nature of construction material. Going by the nature of the material and the nature of their use, these do not fit into definition of capital goods. We find that the same view has been taken by the Tribunal in case of Malavika Steel Ltd. v. CCE, Allahabad [ 1997 (7) TMI 367 - CEGAT, NEW DELHI] and Vivek Alloys Ltd. v. CCE, Coimbatore [ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... general purpose items having multifarious uses. These are not identified in commercial trade parlance as components/spares or accessories of the machinery. He pleaded that coal bunkers and parts with accessories were used as boiler parts for temporary storage of crushed coal and these are located in the boilers. The CBEC under Circular No. 276/110/96-TRU, dated 2-12-1996 has clarified that spares components and accessories used in capital goods are eligible for the purpose of Modvat credit irrespective of their classification. The steam produced in the boiler is used for operation of power plant. Power plant falls under sub-heading 85.02 and parts and accessories and component parts of capital goods listed under Rule 57Q are eligible for Modvat credit. He relied on the following decisions - 1. CCE, Meerut v Triveni Engineering Works Ltd., 1997 (96) E.L.T. 655 (T) where it was held that boiler is to be considered as capital goods even prior to its specification under Rule 57Q with effect from 16-3-95. Therefore, parts of boilers would be held as eligible to credit. 2. CCE, Coimbatore v. Southern Iron and Steel Co. [2000 (121) E.L.T. 164 (T) = 2000 (92) ECR 588 (T)] where it was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 002 (148) E.L.T. 122)] and several other decisions. 5. In Appeal No. E/287/02, he pleaded that the department disallowed Modvat credit on HR coils falling under sub-heading 7208.31. He pleaded that these coils are used for fabrication of pipelines for condenser cooling system and raw water pumping and circulation from RSP canal. The fabrication for pipes involves cutting of coils into required sizes, V Groove cutting on four sides and welding. He relied on the following decisions: - 1. Indian Seamless Steels & Alloys Ltd. v. CCE, Pune [1999 (113) E.L.T. 222 (T)] 2. Rosa Sugar Works v. CCE, Kanpur [2001 (131) E.L.T. 89 (Tri. - Del.)]. In their own case in Final Order No. 1371, dated 27-10-2003 and Final Order No. 1415, dated 4-11-2003 passed by the Bangalore Bench. 6. Shri L. Narasimha Murthy, learned SDR, appearing for Revenue pleaded that the Commissioner (Appeals) has correctly denied the credit on coal bunkers and its parts and accessories falling under sub-heading 7326.90 as coal bunker cannot be considered as component part of boiler or part of plant. He stated that the issue relates for a period from 20-7-1996 to 22-8-1996. The credit denied on chequered plates/hard pla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Commissioner (Appeals). As regards chequered plates/hard plates, we find that these are general purpose items having multifarious use. The appellants before the lower authorities have pleaded that these are used as components/spare parts of machinery. They have neither specified that for which machinery these are used as spares nor we consider that chequered plates can be considered as component parts or spare parts of machinery. The decision relied upon are not applicable in the present case as in the cases relied upon by the appellants there is a specific finding that CI plates are used in the base for boiler or chequered plates are used to support various machinery parts of machines. In the present case, the appellants have not identified that how these chequered plates/hard plates are used as components of machinery. Therefore in the absence of any evidence that these are really component parts of machinery we do not find any deficiency in the order of Commissioner (Appeals). 10. Regarding rejection of credit on columns of heavy fabricated structures and bracings, we find that the lower authorities have given the finding that columns and bracings are in the nature of constr ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
