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2024 (2) TMI 905 - CESTAT CHENNAIClearance of goods in the nature of ceramic fiber board and ceramic fiber twisted rope - goods are used for insulating the furnaces /Kilns - benefit of N/N. 33/2005-CE dated 08.09.2005 denied - HELD THAT:- It is seen that the main reason for denying the benefit of Notification is that these goods do not have any direct role in power generation - the said view cannot be endorsed upon. The Ceramic Fiber Board and Ceramic Fiber Twisted Rope are required for making the insulation on the furnace and without such insulation the heat cannot be controlled and so also the safety around the furnace cannot be ensured. These form essential part of the boiler and therefore are eligible for the benefit of Notification. The Tribunal in the case of CHEMPLAST SANMAR LTD. VERSUS COMMISSIONER OF C. EX., TIRUCHIRAPALLI [2006 (8) TMI 51 - CESTAT, CHENNAI] had observed that these materials are eligible for credit as capital goods as these form part of the furnace and pipeline used in the factory. Again it is to be stated that as per the exemption Notification, all items which are used for setting up of the project for generation of power using non-conventional materials is eligible for the benefit of exemption. The demand cannot sustain. The impugned order is set aside - Appeal allowed.
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