2003 (6) TMI 138

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..... r in appeal whereby the penalty on Modvat credit was allowed on capital goods. 2.Heard both sides. 3.The Commissioner (Appeals) allowed the benefit of Modvat credit in respect of the capital goods purchase through job worker/contractor. 4.The contention of the Revenue is that the appellants are not entitled for the benefit of credit in respect of these items as these are indirect purchases a .....

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..... trued to be component part of machine or machinery. The paints are not capital goods. The White lead is a chemical, therefore, is not covered under the definition of capital goods. In respect of Air Conditioners, the contention of the Revenue is that these are used in the office. In respect of the UPS, the Revenue's contention is that they are used to supply the power to computer, therefore, are n .....

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..... refore, is entitled for the benefit of Modvat credit. The appeal of the Revenue in this respect is dismissed. 11.In respect of the benefit of Modvat credit as capital goods in respect of steel structure of Air Conditioner, UPS and paints, there is no finding that these are used with machine or machinery. Therefore, we find that the matter requires re-consideration by the adjudicating authority i .....

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