1998 (3) TMI 347

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....tmosphere in the manufacturing process such as pressure gauge, vacuum gauge (e) boiler furnace sheet, fan coil unit and system cable, on the ground that they do not fall within the definition of capital goods for the purpose of Rule 57Q. In addition, a penalty of Rs.50,000/- has also been imposed. The period during which the above quantum of credit was availed is August, 1994 to January 1995. 2. The facts of the case are that the appellants are engaged in the manufacture of polyester polymer chips falling under sub-heading 3907.60 of the Schedule to the CETA, 1985. They were availing Modvat credit on the above mentioned items. Proceedings were initiated against the appellants vide show cause notice dated 9-2-1995 proposing disallowal ....

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.... item is not eligible for Modvat credit. (b) Invertor and Spares and Alphaline Differential Pressure Transmitter : These are controlling devices for controlling the speed of the agitators which is used to mix polymer in poly reactor. The quality and viscosity of the polymer chips depend on mixing and proper heating of polymers during polymerisation. Hence it is held that these are instruments and apparatus covered as capital goods under Rule 57Q and Modvat credit is admissible thereon. I also note that credit has been extended to alphaline differential pressure transmitters in the case of the appellants' sister concern under Final Order No. A/5-6/98-NB dated 30-12-1997. (c) Programmable Logic Controller : This helps to transfer ....