TMI Blog2008 (4) TMI 94X X X X Extracts X X X X X X X X Extracts X X X X ..... Ravi Raghvan, Advocate, for the Appellant. Shri Sanjay Kumar, DR, for the Respondent. [Order per : S.S. Kang, Vice-President]. - Heard both sides. Appellant filed this appeal against the impugned order, whereby the credit was disallowed in respect of the following items on the ground that the same are not eligible for credit :- (i) Forged Products, Blooms, Billets (ii) Chequered Plates (iii) GC Sheets (iv) Flats MS Plates (v) MS Rounds (vi) Paints Varnishes (P V) (vii) Mafrolite (viii) High Alumina Refractory Cement (ix) Aluminium Ferrules The credit was also denied on the ground that the invoices issued by Hindustan Petroleum Corporation Ltd. (HPCL) are not valid duty paying documents, in some cases copy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the manufacture of capital goods. The contention is that as the items, in question, were used in the manufacture of goods on which no duty has been paid, therefore, are not entitled for credit. 5. We find that in this case, there is no dispute regarding the use of items, in question the manufacture of the parts of capital goods which are further used in the factory. We find that the Tribunal in the case SAIL v. CCE (supra) allowed the credit which was denied on the similar ground :- "16. As regards other inputs, such as castings, rounds, plates etc. used for manufacture of machine parts, we note that the machine parts themselves being capital goods are exempted under Notification 67/95. However, following the cited decision of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . This Court concluded that goods once brought in factory for use in up-keep and maintenance of plant and machinery, which are directly used in manufacture of excisable articles, are the capital goods, and were certainly of subordinate necessity to such plant and machinery for the running of plant and is otherwise essential for its smooth and regular operations. Without proper up-keep and maintenance, the principal plant and machinery cannot function properly. Use of such capital goods is essential for smooth running of plant with greater efficiency. In other words, the goods in question are essential supplement to the plant and machinery for use in manufacturing goods, for its greater efficiency and better results and thus, it is an integr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... revenue is not disputing the eligibility of the credit. The same is being denied only on the ground that the evidence regarding quantity used is not produced. Revenue is not denying the fact that appellants are not taking credit' in respect of whole of the quantity received. In these circumstances, as the appellants were taking credit in respect of the quantity which are used for marking only, as per the record maintained. Therefore, denial of credit is set aside. Credit in respect of Mafrolite, High Alumina Refractory Cement and Aluminium Ferrules was denied on the ground that High Alumina Refractory and Mafrolite is used in the lining of the furnace as refractory material. We find that this issue is settled by the various decisions of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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