2006 (7) TMI 421 - AT - Central Excise

Summary

Issues:
1. Denial of credit for various goods claimed as capital goods eligible for Modvat credit.
2. Specific items challenged for credit in Appeal No. E/537/05.
3. Items covered in Appeal No. E/539/2002.

Analysis:

Issue 1 - Denial of Credit for Various Goods:
The appeals were filed against Orders-in-Appeal sustaining denial of credit to goods claimed as capital goods eligible for Modvat credit. The Commissioner (Appeals) had denied credit for various items, prompting the appellants to challenge the orders.

Issue 2 - Appeal No. E/537/05:
1. UPS and Battery: Credit disallowed on the ground that they were not capital goods. However, considered essential for plant operation and eligible for credit as per Rule 57Q.
2. Tubes, Pipes, and Fittings: Initially disallowed but deemed capital goods essential for plant functioning, hence eligible for credit.
3. GI Coupler Plates, M.S. Sheets, Cable Trays: Eligible for credit under Rule 57Q based on precedents and necessity for plant operation.
4. Centralized Lubricating System: Denied credit initially but essential for machinery functioning, hence eligible for capital goods credit.
5. Blower Fans, Dedusting Fans, Air Blower: Parts of power plant crucial for steel mill operation, eligible for credit as capital goods.
6. Whyheat-C: Used for bonding refractory bricks, considered part of the furnace, hence eligible for credit.
7. Vibrating Feeders: Material handling equipment essential for production process, eligible for credit.
8. Refractory Bricks: Initially denied credit but considered capital goods as part of the furnace, hence eligible.

Issue 3 - Appeal No. E/539/2002:
1. Tubes, Pipes, and Fittings: Credit disallowed initially but deemed eligible for capital goods credit due to necessity for plant operation.
2. Refractory Bricks: Initially denied credit, but as part of the furnace, eligible for capital goods credit.
3. Goods used in Boiler, Blower House, and Compressor House: Parts of power plant essential for steel production, eligible for capital goods credit.
4. Material Handling Equipment: Crucial for production process, hence eligible for credit.
5. Jaw Crusher: Considered integral to the manufacturing process in the blast furnace, hence eligible for credit.

The Tribunal remanded the issue of credit disallowed due to lack of relevant documents to the original authority for scrutiny. The appeal regarding emitting electrodes was treated as withdrawn. The judgment provided detailed reasoning for each item's eligibility for capital goods credit, emphasizing their essential role in the manufacturing process.