TMI Blog2016 (3) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... - Appeal No. E/281/2005 - Order No. A/10118 / 2016 - Dated:- 23-2-2016 - Mr. P.K. Das, Hon'ble Member (Judicial) For the Appellant : Shri H. D. Dave, Advocate For the Respondent : Shri T. K. Sikdar, Authorised Representative ORDER Per Mr. P. K. Das The appellants were engaged in the manufacture of Caustic Soda and Chlorine, classifiable under Chapter 28 of the Schedule to the Central Excise Tariff Act, 1985. A Show Cause Notice dated 30.09.1997 was issued alleging that they have availed modvat credit on Issc Standard Chlorine Containers amounting to ₹ 11,34,900.00, which appear to be not within the meaning of definition of input under Rule 57 A of the erstwhile Central Excise Rules, 1944. The Adjudicating ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... packing material. The Revenue has also contended that Chlorine Cylinders have been described as Chlorine Storage Mobile Vessel in one of their declaration, which indicates that they are used for purposes of transferring the liquid Chlorine from their factory to other places. 3. After giving our careful consideration to the issue involved, we find that the Tribunal in the case of Lupin Laboratories Ltd. v. C.C.Ex., Indore reported in 1998 (100) E.L.T. 52 (T), has extended the facility of Modvat credit to the cylinders used for storing the liquid. All the earlier decisions were heard by the Tribunal in the case of C.C.Ex., Hyderabad-III v. B.O.C. India Ltd. reported in 2000 (36) RLT-910 (CEGAT). Cylinders for storing Oxygen Gas were held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reactor is plant/machinery as discussed by the Adj. Authority in his OIO. But, storage tank of an input viz. Chlorine tonner neither fulfill the conditions to be a component, spare or accessory. The board has clarified that the components, spares and accessories used in the, plant and machinery are admissible for modvat credit. Tonners are not part (or essential part) of the Reactor Machinery where reaction takes place. Reactor will function if chlorine is supplied to it whether through tonner or some other storage tank thing. Furthermore, the period in which credit was availed was prior to 23-7-96 viz. when specific definition of Capital Goods was given prior to this the definition of capital goods was the plant or machinery used ..... X X X X Extracts X X X X X X X X Extracts X X X X
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