TMI Blog2007 (8) TMI 163X X X X Extracts X X X X X X X X Extracts X X X X ..... penalty of the like amount, besides demanding interest. 2. The appellant was engaged in the manufactured of sugar molasses and was availing Modvat credit. According to the Revenue, 'it had wrongly availed Cenvat credit on jointing gasket sheets, asbestos graphite lub packing, steel packing, welding electrodes and plain plates during the period from March 2003 to January 2004. According to the assessee, packing/jointing was used to tighten the joints of the air of the gas in the sugar mill plant for various lines of pipes, besides for jointing purposes in boilers, sulphur furnace etc. For electrodes, it was contended that they were used for repairing various machineries, which was needed due to wear and tear. The electrodes were also us ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... E, Kanpur reported in 2001 (135) E.L.T. 654 (Tri-Del.) that, plates, channels, section, sheets etc. are common civil construction items and in the normal course would not be eligible for Modvat credit. Similar view was also taken in Rosa Sugar Works v. CCE, Kanpur reported in 1999 (114) E.L.T. 950 (Tri.-Del.), and in CCE, Noida v. DSM Ltd. reported in 2003 (162) E.L.T. 987 5. The learned authorized representative for the assessee tried to argue that the expression "plain plates" should be treated to be referring to the parts of the machinery used in the factory of the assessee for manufacturing sugar. He submitted that large quantity of plates are used in the moving cranes which are employed during the manufacturing proces ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... II v. Kissan Sahakari Chinni Mills reported in 2007 (78) RLT 820. It has been held by these decisions that the gasket fibre jointing sheets which were items to seal the leakage and allowing flow of liquids during the process of manufacture from one equipment to another, were components and/or accessories of plant and machinery installed at the factory and they qualified for Modvat credit as capital goods. As held in Dwarikiesh Sugar Industries v. CCE, Meerut decided on 16-8-2007 [2007 (220) E.L.T. 938 (Tri)] that the asbestos gaskets are used in boilers, sulphur furnace, quads, pans and pumps, they can be considered as parts of the machinery. Even after the omission of the word "plant" in the definition of capital goods in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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