2004 (8) TMI 217

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..... es it is found- (a) Revenue is in appeal against the respondents an assessee be denied on storage tanks based on eligibility and on filing of declaration. (b) Commissioner granted the credit as nitrogen was exclusively captively consumed and not marketed outside and the description given broadly covered most of the goods alleged to be not declared. He held eligibility could not be deni .....

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..... nalysis of the process of manufacture adopted concluded that nitrogen gas was vital input in the manufacture of pipes and without use of nitrogen the pipes would not be possible to be manufactured. Once assessee has adopted for a process of manufacture, where nitrogen gas is essential, they would be eligible to credit of capital goods which produce such nitrogen. We find no reason to deny the cred .....

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..... ken by revenue credit on nitrogen plant as capital goods is eligible. (e) As regards storage tank eligibility, it is part and component of the plant to store nitrogen gas. Storage tanks are eligible capital goods and Commissioner has correctly granted the credit as components essential to the nitrogen gas plant. Revenue is not contesting that aspect. Credit is therefore held eligible. (f) .....

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