TMI Blog2014 (10) TMI 637X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, the Tribunal is correct in holding that the inputs are used directly or indirectly for the manufacture of final product as per Rule 57A of the Central Excise Rules during the relevant period. assessee is entitled for credit for the above said items - Decided against Revenue. - C.M.A. NO. 1585 OF 2007 - - - Dated:- 24-7-2014 - R. SUDHAKAR AND G.M. AKBAR ALI, JJ. Vikram Ramakrishnan for the Appellant. Parthasarathy and Lakshmi Kumaran for the Respondent. JUDGMENT G.M. Akbar Ali, J. - The respondent herein is a manufacturer of Aluminium and Articles falling under Chapter 76 of the Scheduled to the Central Excise Tariff Act 1985. The respondent avails credit of the duty paid on various inputs/ components used in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he present appeal on the ground that all the decisions relied on by the Tribunal are related to eligibility of capital goods under Rule 57Q, but the goods in dispute relates to Rule 57A. 5. On admission, the following substantial questions of law were framed: (i) Whether the Tribunal is correct in holding goods which were not used directly or indirectly for the manufacture of final products are eligible inputs as per erstwhile Rule 57A of Central Excise Rules, 1944? (ii) Whether the Tribunal is right in holding that the said items falling under Chapter 73 are in the nature of capital goods as per erstwhile Rule 57Q of Central Excise Rules, 1944 and whether the declaration filed under Rule 57A is sufficient for Rule 57Q? 6. Hea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tems namely, Rodine Alfloc, it is observed the the order-in-original has not recorded any separate findings except as extracted in para-13 herein above. Since these items as recorded at Sl.Nos.34 35 of Para 3 of Order-in-Appeal are used in boiler water for the preparation of softening watering so that scale formations re reduced and break down of boiler does not take place where steam is generated for use and also reduce the corrosive effects of acid in washing the Evaporator and Heat Exchanger which are essential for heat transfer, the credit would be eligible under Rule 57A following the decision in the case of Andhra Pradesh Paper Mills - 1990 (50) ELT 252 for Alfloc and other decisions for cleaning the chemical used to prepare machi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned, these inputs were under the consideration of Tribunal's decision in the assessee's own case reported in Madras Aluminium Co. Ltd. (supra), which is subsequently confirmed by the division bench of this court in the case reported in Madras Aluminum Co. Ltd.(supra) Therefore, these items are also eligible for credit. 17. As far as item no.11 PVC Pipes is concerned, in the case of Vardhman Acrylics Ltd v. CCE C 2006 (194) ELT 85 (Tri-Mum.) and CCE v. Pepsico India Holding Ltd 2001(130) ELT 193 (Tri-Chennai), it is held that this item is also eligible for credit and therefore, this item is also eligible for credit. 18. Sec.57 of the Central Excise Rules deals with credit of duty paid on the excisable goods used as inputs. R ..... X X X X Extracts X X X X X X X X Extracts X X X X
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