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2016 (3) TMI 67 - CESTAT AHMEDABAD

2016 (3) TMI 67 - CESTAT AHMEDABAD - TMI - Modvat credit disallowed - Held that:- Chlorine containers are duty paid and used in the manufacture of final product. The Tribunal consistently viewed that, the Chlorine containers are eligible for CENVAT credit. The dispute relates to the value of the Chlorine containers was not included in the assessable value. But, there is no material available on record that any proceeding was initiated against the appellant for non-inclusion of the value of the c .....

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he 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 Authority disallowed the modvat credit of ₹ 11,34,900.00 under Rule 57 A of the erstwhile Rules, 1944. It has also imposed penalty of .....

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nd in view of Clause (iii) of explanation to Rule 57A, the containers even used in or relation to the manufacture of final product would not be treated as input. 4. I find that the issue is no more res integra, in view of the decision of the Tribunal in the case of Commissioner of Central Excise, Raipur vs Hukumchand Jute Inds. Limited. 2001 (137) E.L.T. 633 (Tri.-Kolkata). In that case, the Tribunal held as under:- 2. As against the above, the Revenue in their Memo of Appeal has contended that .....

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n, 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. .....

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nd any merits in the Revenue s appeal. The same is accordingly rejected. 5. In the case of Gnfc Limited. Vs. Commissioner of Central Excise, Vadodara 2012 (278) E.L.T. 273 (Tri.-Ahmd.), the Tribunal observed that Chlorine cylinders brought into the factory and used as storage tanks would perform dual function of transportation and storage tanks and CENVAT credit is admissible. In the case of Commissioner of Central Excise, Surat-II vs. Mangalam Rasayan P. Limited. 2007 (219) E.L.T. 957 (Tri-Ahmd .....

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fitted to the tonner thereby chlorine is supplied to Reactor for reaction. 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. .....

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