TMI Blog2007 (1) TMI 182X X X X Extracts X X X X X X X X Extracts X X X X ..... for manufacture of the final product and hold that the catalyst is only ‘input’ and granted relief to the assessee in appeal E/461/02 – Tribunal’s order upheld. - 833 of 2006 - - - Dated:- 8-1-2007 - Dharma Rao Elipe and P.P.S. Janarthana Raja, JJ. Civil Miscellaneous Appeal (MD) No. 833 of 2006 and C.M.P (MD) No. 2 of 2006 Shri R. Karthikeyan, Advocate, for the Appellant. Shri Pon. Muthuramalingam, Assistant Solicitor General of India , for the Respondent. [Order per : Dharma Rao Elipe, J.].- The appeal filed by the appellant under Section 35G of the Central Excise Act, 1944 against the final order of Central Excise and Service Tax Appellate Tribunal, Chennai Bench dated 28-11-2005 in Final order No.1506 of 2005 rai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant purchased sulphuric acid catalyst falling under Chapter head 3815.00 and availed Cenvat credit on the CVD paid. 50% of the credit was availed and the balance was credited in the Cenvat register for capital goods by Sl. No. 223 on 23-4-2002. According to the Revenue, the appellant wrongly availed Cenvat benefit on the capital goods namely sulphuric acid catalyst falling under Chapter head 3815.00 and the said capital is not covered in the capital goods and hence, show cause notice was issued and served on the assessee and the assessee also replied by letter dated 12-3-2003 to the show cause notice and submitted that the credit should not denied on the capital goods. After considered the reply, the Assistant Commissioner of Cent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cific credit under capital goods. (d) A catalyst is a substance or material that will change the rate of reaction without it being consumed by the reaction. (e) When the plant was commissioned in the year 1996, the converter imported and refilled with the said catalyst had been considered as capital goods. (f) Meaning of component as per Oxford Dictionary - In the case of Chemical System, it is used to denote art ingredient of a chemical compound. In another sense, the word is used to denote smallest unit of classification, component is always an essential element of a ma chine. A machine is not a machine without a component. (g) without filling/re-filling the catalyst, the converter cannot function and hence by all parlance it shou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 (138) E.L.T. 1402 (T) 3. CCE, v. Thungabadra Sugar Works Ltd., cited in 2001 (130) E.L.T. 902 (Tri.-Chennai) 4. CCE, Chandigarh v. Oswal Agro Mills Ltd. cited in 2000 (118) E.L.T. 166 (Tribunal) 5. V B C Industries Ltd. v. CCE, Vizakapatham cited in 1997 (91) E.L.T. 666 (Tribunal) 2. Ld. SDR reiterated the above ground of the appeal. Ld. Counsel argued in favour of the impugned order. After a perusal of the above case law cited by the appellant, I find that the catalyst in question can only be considered as an 'input'. No contra decision has been cited before me by the respondent. 3. In the result, the impugned order gets set aside and this appeal is allowed." From reading of the above, it is very clear that the Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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