TMI Blog2001 (7) TMI 165X X X X Extracts X X X X X X X X Extracts X X X X ..... .84 was not admissible to the appellants on various grounds as indicated in the SCN. Accordingly, a SCN was issued to the appellants asking them to explain as to why Modvat credit should not be denied. Detailed enquiries were conducted by the Department regarding the location and function of the items on which Modvat credit was claimed as capital goods or spares thereof. After careful consideration of the submissions made, a demand of Rs. 7,84,889.84 was confirmed by the authorities below. Against this the appellants have come up in appeal before me. 2.Arguing the case for the appellants Shri Sandeep Singh, ld. Counsel submits that in respect of Armoured Cables, the objection of the Department was that the invoice endorsed was not in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of the Department was that this was a part of air pollution equipments. Ld. Counsel submitted that the authorities below allowed them the benefit of Modvat credit and therefore, this item is not contested. In regard to AC Motors appearing against S. No. 4 of the Annexure to the SCN, the allegation of the Department was that Modvat credit has been taken on extra copy of the invoice. Ld. Counsel for the appellant submitted that since it was a new scheme, therefore, it may be considered as a procedural lapse and Modvat credit may be allowed. As against this the Departmental representative submits that there is no provision in the Modvat rules for allowing Modvat credit on extra copy of the invoice. On careful consideration of the submissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .In so far as Five-way Coil is concerned, the objection of the Department was that it was not capital goods. Five-way coil and its function and location in the machinery shows that it is necessary for production of the goods. It is, therefore, capital goods and therefore, will be eligible for Modvat credit. I hold accordingly. 10.Modvat credit has also been denied on Spares for fluid couplings on the ground that credit has been taken on extra copy of the invoice. Since I have already held that there is no provision of taking Modvat credit on extra copy of invoice, I hold that the authorities below have rightly denied Modvat credit on spares for fluid couplings. 11.Modvat credit has been denied on cold frame sections on the ground that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taken by them on original copy. I agree with the contention of the ld. Counsel in this regard and hold that Modvat credit has correctly been taken at S. No. 12 13. 14.Modvat credit was denied on IC Engines described against S. No. 15 of the Annexure to the SCN stating that they were not capital goods in-as-much as they were used for rotating the kiln only for purpose of safety and not for purpose of manufacture of cement. The contention of the ld. Counsel for the appellant was that safety of the kiln is also an essential part for the production process. I agree with this contention and hold that IC Engines in the instant case will be capital goods and therefore, eligible for Modvat credit. 15.Modvat credit was denied on Fluid couplin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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