Capital goods classification for evaporator boats used in metallization allows Cenvat credit under Heading 84.19.

Evaporator boats used in manufacturing BOPP films were treated as machinery or equipment classifiable under Heading 84.19, because they were used to evaporate or vaporize aluminium for metallization. Although they were not inputs, they fell within the definition of capital goods under the Cenvat Credit Rules, 2002. On that basis, Cenvat credit was held admissible as capital goods, and the Department's challenge did not succeed.

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Issues: Whether Evaporator Boats used in the manufacture of BOPP films were classifiable as capital goods under Heading 84.19 and therefore eligible for Cenvat credit under the Cenvat Credit Rules, 2002.

Analysis: The goods were found not to be inputs. The Tribunal accepted the classification adopted by the Commissioner (Appeals) that the evaporator boat was machinery or equipment covered by Heading 84.19, used in the process of evaporating or vaporizing aluminium for metallization. On that basis, the goods fell within the definition of capital goods for Cenvat credit purposes.

Conclusion: The credit was admissible as capital goods, and the Department's appeal failed.

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